Applied Digital (NASDAQ:APLD) Trading Down 7.6% – Should You Sell?

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 7.6% during trading on Wednesday . The stock traded as low as $25.52 and last traded at $26.41. 27,009,224 shares were traded during mid-day trading, a decline of 25% from the average session volume of 35,961,578 shares. The stock had previously closed at $28.57.

Analyst Ratings Changes

Several brokerages have weighed in on APLD. Citigroup reiterated an “outperform” rating on shares of Applied Digital in a report on Thursday, October 9th. HC Wainwright upped their target price on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Craig Hallum raised their price target on Applied Digital to $39.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. Lake Street Capital lifted their price target on Applied Digital from $18.00 to $37.00 and gave the company a “buy” rating in a report on Friday, October 10th. Finally, Compass Point began coverage on shares of Applied Digital in a report on Monday, September 15th. They set a “buy” rating on the stock. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Applied Digital presently has an average rating of “Moderate Buy” and a consensus target price of $26.20.

Applied Digital Trading Down 7.6%

The firm’s 50 day simple moving average is $26.89 and its 200-day simple moving average is $16.34. The company has a market capitalization of $7.51 billion, a PE ratio of -23.37 and a beta of 6.77. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The business had revenue of $38.01 million for the quarter, compared to the consensus estimate of $52.25 million. During the same quarter last year, the firm posted ($0.15) EPS. The business’s revenue for the quarter was up 84.3% compared to the same quarter last year. As a group, equities research analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Buying and Selling

In other news, Director Chuck Hastings sold 25,000 shares of the stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $34.27, for a total value of $856,750.00. Following the completion of the sale, the director owned 426,612 shares in the company, valued at approximately $14,619,993.24. This trade represents a 5.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of the business’s stock in a transaction that occurred on Tuesday, October 28th. The stock was sold at an average price of $36.47, for a total value of $1,367,734.41. Following the transaction, the chief financial officer directly owned 121,409 shares in the company, valued at $4,427,786.23. This trade represents a 23.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 823,035 shares of company stock valued at $18,930,179. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in APLD. Teacher Retirement System of Texas purchased a new position in Applied Digital in the first quarter valued at about $139,000. Scientech Research LLC acquired a new position in shares of Applied Digital in the 1st quarter valued at approximately $806,000. Chelsea Counsel Co. bought a new stake in shares of Applied Digital in the second quarter worth $582,000. Lake Hills Wealth Management LLC acquired a new stake in Applied Digital in the second quarter valued at $184,000. Finally, KLP Kapitalforvaltning AS grew its holdings in Applied Digital by 27.7% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 41,500 shares of the company’s stock worth $418,000 after acquiring an additional 9,000 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.