Applied Digital (NASDAQ:APLD) Shares Down 5.6% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) dropped 5.6% during mid-day trading on Monday . The company traded as low as $5.28 and last traded at $5.40. Approximately 4,962,739 shares traded 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.

Wall Street Analysts Forecast Growth

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

Applied Digital Price Performance

The firm has a market capitalization of $1.36 billion, a PE ratio of -3.52 and a beta of 4.69. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The business’s 50 day moving average is $7.63 and its two-hundred day moving average is $8.01.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data 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. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The company had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. During the same period in the previous year, the firm posted ($0.05) EPS. The firm’s revenue was up 51.3% compared to the same quarter last year. As a group, research analysts anticipate that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction 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 transaction, the director now owns 342,923 shares in the company, valued at $3,034,868.55. This trade represents a 5.51 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Institutional investors have recently added to or reduced their stakes in the business. Wilmington Savings Fund Society FSB boosted its holdings in Applied Digital by 100.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock valued at $31,000 after acquiring an additional 2,000 shares during the period. R Squared Ltd purchased a new stake in shares of Applied Digital during the fourth quarter valued at approximately $36,000. US Bancorp DE bought a new position in shares of Applied Digital in the fourth quarter worth approximately $37,000. Jones Financial Companies Lllp bought a new position in shares of Applied Digital in the fourth quarter worth approximately $39,000. Finally, Spire Wealth Management purchased a new position in shares of Applied Digital in the fourth quarter worth $43,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.