Applied Digital (NASDAQ:APLD) Stock Price Down 5.6% – Time to Sell?

Applied Digital Co. (NASDAQ:APLD)’s share price dropped 5.6% during mid-day trading on Monday . The stock traded as low as $5.28 and last traded at $5.40. Approximately 4,962,739 shares changed hands during trading, a decline of 81% from the average daily volume of 26,180,809 shares. The stock had previously closed at $5.72.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. HC Wainwright boosted their target price on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Wednesday, January 15th. Compass Point assumed coverage on Applied Digital in a research note on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price target on the stock. Needham & Company LLC reiterated a “buy” rating and set a $11.00 price target on shares of Applied Digital in a report on Monday, February 24th. Northland Securities boosted their price objective on shares of Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday, February 4th. Finally, Cantor Fitzgerald lowered their target price on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday, January 15th. Nine equities research analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $12.11.

Applied Digital Price Performance

The company’s 50-day moving average price is $7.76 and its 200-day moving average price is $8.01. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of -3.16 and a beta of 4.69.

Applied Digital (NASDAQ:APLD) last released its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.08. The company had revenue of $63.87 million for the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The firm’s quarterly revenue was up 51.3% on a year-over-year basis. During the same period in the prior year, the business earned ($0.05) EPS. On average, equities research analysts forecast that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the completion of the transaction, the director now owns 342,923 shares in the company, valued at $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 11.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of the company. California State Teachers Retirement System increased its holdings in Applied Digital by 65.6% in the fourth quarter. California State Teachers Retirement System now owns 162,561 shares of the company’s stock valued at $1,242,000 after buying an additional 64,425 shares during the last quarter. Polar Asset Management Partners Inc. purchased a new position in shares of Applied Digital in the 4th quarter valued at about $510,000. Mackenzie Financial Corp acquired a new stake in shares of Applied Digital during the 4th quarter worth about $92,000. GTS Securities LLC purchased a new stake in Applied Digital during the fourth quarter worth approximately $196,000. Finally, Two Seas Capital LP acquired a new position in Applied Digital in the fourth quarter valued at approximately $5,062,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.