Applied Digital (NASDAQ:APLD) Shares Down 4.1% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD)’s stock price dropped 4.1% during mid-day trading on Tuesday . The company traded as low as $7.00 and last traded at $7.04. Approximately 3,700,619 shares traded hands during trading, a decline of 86% from the average daily volume of 26,772,354 shares. The stock had previously closed at $7.34.

Wall Street Analyst Weigh In

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

Applied Digital Price Performance

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 business has a fifty day moving average of $7.98 and a 200 day moving average of $7.89. The firm has a market cap of $1.62 billion, a P/E ratio of -4.20 and a beta of 4.69.

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

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $8.85, for a total value of $177,000.00. Following the transaction, the director now owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 11.81% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Digital

Several hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its position in Applied Digital by 65.6% during the 4th quarter. California State Teachers Retirement System now owns 162,561 shares of the company’s stock worth $1,242,000 after buying an additional 64,425 shares during the period. Polar Asset Management Partners Inc. acquired a new position in shares of Applied Digital in the fourth quarter valued at about $510,000. Mackenzie Financial Corp acquired a new stake in Applied Digital in the 4th quarter worth about $92,000. GTS Securities LLC bought a new stake in Applied Digital in the 4th quarter valued at about $196,000. Finally, Two Seas Capital LP acquired a new position in shares of Applied Digital during the 4th quarter worth approximately $5,062,000. 65.67% of the stock is 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.