Applied Digital (NASDAQ:APLD) Shares Gap Down Following Insider Selling

Applied Digital Co. (NASDAQ:APLD)’s share price gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $8.18, but opened at $7.95. Applied Digital shares last traded at $7.97, with a volume of 446,605 shares trading hands.

Specifically, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Thursday, October 17th. The stock was sold at an average price of $8.01, for a total value of $80,100.00. Following the transaction, the director now owns 208,506 shares in the company, valued at approximately $1,670,133.06. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 80,000 shares of the firm’s stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $7.37, for a total transaction of $589,600.00. Following the sale, the director now directly owns 433,686 shares in the company, valued at approximately $3,196,265.82. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on APLD. Craig Hallum lifted their target price on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. Roth Mkm reiterated a “buy” rating and issued a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. HC Wainwright raised their target price on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Lake Street Capital lifted their target price on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research note on Thursday, October 17th. Six research analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital has an average rating of “Buy” and a consensus price target of $10.50.

Applied Digital Price Performance

The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 1.14. The stock has a fifty day moving average of $6.12 and a two-hundred day moving average of $5.01. The stock has a market cap of $1.25 billion, a price-to-earnings ratio of -11.56 and a beta of 4.56.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.13. The business had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 107.05%. The business’s revenue was up 67.2% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.10) EPS. On average, equities research analysts anticipate that Applied Digital Co. will post -1.12 earnings per share for the current year.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in shares of Applied Digital by 70.2% during the 1st quarter. Vanguard Group Inc. now owns 6,176,073 shares of the company’s stock worth $26,434,000 after purchasing an additional 2,547,485 shares in the last quarter. Van ECK Associates Corp increased its position in Applied Digital by 92.1% during the first quarter. Van ECK Associates Corp now owns 2,426,281 shares of the company’s stock worth $10,384,000 after buying an additional 1,163,247 shares in the last quarter. Hood River Capital Management LLC raised its holdings in shares of Applied Digital by 8.7% in the second quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock worth $57,098,000 after acquiring an additional 771,699 shares during the last quarter. Alight Capital Management LP purchased a new stake in shares of Applied Digital in the second quarter valued at $3,570,000. Finally, Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Applied Digital by 69.3% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,311,594 shares of the company’s stock valued at $5,614,000 after acquiring an additional 536,948 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.