Applied Digital (NASDAQ:APLD) Trading Down 1.3% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price dropped 1.3% during trading on Friday . The company traded as low as $19.00 and last traded at $21.09. Approximately 36,648,654 shares were traded during mid-day trading, an increase of 2% from the average daily volume of 35,868,574 shares. The stock had previously closed at $21.37.

Analyst Ratings Changes

Several analysts have recently commented on the company. Compass Point assumed coverage on Applied Digital in a report on Monday, September 15th. They set a “buy” rating on the stock. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Sunday, October 19th. HC Wainwright raised their price objective on shares of Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, October 10th. Lake Street Capital boosted their target price on shares of Applied Digital from $18.00 to $37.00 and gave the stock a “buy” rating in a research note on Friday, October 10th. Finally, Craig Hallum upped their target price on shares of Applied Digital to $39.00 and gave the stock a “buy” rating in a research report on Thursday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Applied Digital presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.20.

Applied Digital Stock Performance

The stock has a market capitalization of $6.00 billion, a price-to-earnings ratio of -18.66 and a beta of 6.77. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a 50-day moving average of $28.04 and a 200 day moving average of $17.08.

Applied Digital (NASDAQ:APLD) last released its earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share (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 company had revenue of $64.22 million for the quarter, compared to the consensus estimate of $52.25 million. During the same period in the prior year, the company posted ($0.15) EPS. The company’s revenue was up 84.3% compared to the same quarter last year. On average, analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard N. Nottenburg sold 34,375 shares of the firm’s stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $33.23, for a total value of $1,142,281.25. Following the transaction, the director directly owned 263,612 shares of the company’s stock, valued at approximately $8,759,826.76. This trade represents a 11.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Chuck Hastings sold 50,000 shares of the company’s stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.69, for a total transaction of $1,784,500.00. Following the sale, the director owned 451,612 shares of the company’s stock, valued at $16,118,032.28. The trade was a 9.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 823,035 shares of company stock valued at $18,930,179 over the last three months. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Atlantic Union Bankshares Corp bought a new position in Applied Digital during the second quarter worth about $25,000. Larson Financial Group LLC increased its stake in shares of Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after acquiring an additional 1,129 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Applied Digital in the 2nd quarter valued at approximately $26,000. Dagco Inc. acquired a new stake in shares of Applied Digital in the 3rd quarter valued at approximately $27,000. Finally, PNC Financial Services Group Inc. bought a new position in Applied Digital during the 1st quarter worth approximately $28,000. Institutional investors 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.