Applied Digital (NASDAQ:APLD) Trading Down 2.1% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD)’s share price dropped 2.1% during trading on Tuesday . The stock traded as low as $6.01 and last traded at $6.11. Approximately 5,876,656 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 27,895,232 shares. The stock had previously closed at $6.24.

Analyst Ratings Changes

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

Applied Digital Stock Performance

The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.22. The stock’s 50-day moving average price is $8.23 and its 200-day moving average price is $7.79. The company has a market capitalization of $1.42 billion, a P/E ratio of -3.69 and a beta of 4.69.

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

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the transaction, the director now directly owns 342,923 shares in the company, valued at $3,034,868.55. This trade represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 11.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hood River Capital Management LLC grew its stake in Applied Digital by 10.7% in the 4th quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company’s stock valued at $115,726,000 after buying an additional 1,464,854 shares during the last quarter. Vanguard Group Inc. grew its holdings in Applied Digital by 39.1% in the 4th quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company’s stock valued at $97,487,000 after buying an additional 3,587,619 shares during the last quarter. Geode Capital Management LLC increased its position in Applied Digital by 54.4% in the 4th quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company’s stock worth $36,117,000 after buying an additional 1,665,335 shares during the period. Van ECK Associates Corp lifted its holdings in shares of Applied Digital by 113.8% during the fourth quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company’s stock worth $33,649,000 after buying an additional 2,344,572 shares during the last quarter. Finally, Pertento Partners LLP boosted its position in shares of Applied Digital by 49.0% in the fourth quarter. Pertento Partners LLP now owns 2,528,717 shares of the company’s stock valued at $19,319,000 after acquiring an additional 831,705 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.