Applied Digital (NASDAQ:APLD) Shares Gap Down – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) gapped down prior to trading on Tuesday . The stock had previously closed at $23.79, but opened at $22.66. Applied Digital shares last traded at $22.39, with a volume of 5,306,041 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on the stock. Northland Securities boosted their target price on shares of Applied Digital to $40.00 and gave the stock an “outperform” rating in a research report on Friday, October 10th. Citigroup reissued an “outperform” rating on shares of Applied Digital in a report on Thursday, October 9th. B. Riley reiterated a “buy” rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Needham & Company LLC restated a “buy” rating and set a $41.00 price objective on shares of Applied Digital in a report on Wednesday, October 29th. Finally, Wall Street Zen cut Applied Digital from a “hold” rating to a “sell” rating in a research report on Sunday, October 19th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Performance

The stock’s 50 day simple moving average is $28.17 and its two-hundred day simple moving average is $17.49. The company has a market capitalization of $6.35 billion, a P/E ratio of -20.19 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.

Applied Digital (NASDAQ:APLD) last released its earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.08. The company had revenue of $64.22 million during the quarter, compared to analysts’ expectations of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The business’s revenue for the quarter was up 84.3% on a year-over-year basis. During the same period last year, the firm earned ($0.15) EPS. As a group, research analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Richard N. Nottenburg sold 9,375 shares of the stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $35.91, for a total transaction of $336,656.25. Following the completion of the transaction, the director directly owned 249,237 shares in the company, valued at $8,950,100.67. This represents a 3.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Rachel H. Lee sold 24,213 shares of the firm’s stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $33.20, for a total value of $803,871.60. Following the completion of the transaction, the director owned 59,400 shares of the company’s stock, valued at approximately $1,972,080. This represents a 28.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 823,035 shares of company stock worth $18,930,179 over the last 90 days. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently modified their holdings of the stock. Larson Financial Group LLC increased its position in Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after buying an additional 1,129 shares during the period. Dagco Inc. acquired a new stake in Applied Digital in the third quarter valued at approximately $27,000. Evolution Wealth Management Inc. increased its stake in shares of Applied Digital by 101.8% in the third quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company’s stock valued at $37,000 after buying an additional 807 shares during the period. CoreCap Advisors LLC grew its stake in shares of Applied Digital by 124.9% in the third quarter. CoreCap Advisors LLC now owns 1,804 shares of the company’s stock worth $41,000 after purchasing an additional 1,002 shares during the last quarter. Finally, RiverPark Advisors LLC acquired a new stake in shares of Applied Digital in the third quarter valued at about $51,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Company Profile

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.