Applied Digital (NASDAQ:APLD) Trading Down 0.6% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) shares dropped 0.6% during trading on Thursday . The stock traded as low as $9.56 and last traded at $9.89. Approximately 14,920,338 shares were traded during trading, a decline of 38% from the average daily volume of 24,078,941 shares. The stock had previously closed at $9.95.

Analyst Upgrades and Downgrades

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

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The firm has a market cap of $2.20 billion, a P/E ratio of -5.69 and a beta of 4.77. The company’s 50 day moving average is $8.43 and its 200 day moving average is $7.41.

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

Insider Activity

In other news, Director Richard N. Nottenburg sold 50,000 shares of the firm’s stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $460,000.00. Following the completion of the transaction, the director now owns 334,317 shares of the company’s stock, valued at approximately $3,075,716.40. This trade represents a 13.01 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the transaction, the chief executive officer now owns 3,875,955 shares in the company, valued at approximately $35,658,786. This trade represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 270,000 shares of company stock valued at $2,477,000. 11.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently made changes to their positions in APLD. Wilmington Savings Fund Society FSB lifted its stake in shares of Applied Digital by 100.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after acquiring an additional 2,000 shares during the period. R Squared Ltd acquired a new position in shares of Applied Digital in the 4th quarter worth approximately $36,000. US Bancorp DE bought a new stake in shares of Applied Digital in the 4th quarter valued at $37,000. Jones Financial Companies Lllp acquired a new stake in shares of Applied Digital during the fourth quarter worth $39,000. Finally, Spire Wealth Management bought a new position in Applied Digital during the fourth quarter worth $43,000. Institutional investors 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.