Applied Digital (NASDAQ:APLD) Shares Down 17.7% - Should You Sell?

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares fell 17.7% during trading on Monday . The company traded as low as $8.60 and last traded at $8.77. 21,607,102 shares were traded during trading, a decline of 16% from the average session volume of 25,842,811 shares. The stock had previously closed at $10.65.

Analysts Set New Price Targets

A number of research firms have commented on APLD. Needham & Company LLC reiterated a "buy" rating and set a $11.00 target price on shares of Applied Digital in a research report on Monday, February 24th. Cantor Fitzgerald decreased their target price on Applied Digital from $15.00 to $14.00 and set an "overweight" rating on the stock in a research report on Wednesday, January 15th. Northland Securities boosted their target price on Applied Digital from $12.00 to $20.00 and gave the stock an "outperform" rating in a research report on Tuesday, February 4th. Compass Point began coverage on Applied Digital in a research report on Tuesday, January 28th. They set a "buy" rating and a $10.00 target price on the stock. Finally, HC Wainwright boosted their target price on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a research report on Wednesday, January 15th. Nine investment analysts have rated the stock with a buy rating, According to MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $12.11.

Applied Digital Stock Performance

The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of -4.62 and a beta of 4.77. The stock has a fifty day moving average price of $8.41 and a two-hundred day moving average price of $7.62. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22.

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Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share 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 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%. The business's revenue for the quarter was up 51.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.05) earnings per share. As a group, analysts forecast that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the company's stock in a transaction 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 completion of the transaction, the director now directly owns 342,923 shares in the company, 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 SEC, which can be accessed through the SEC website. Insiders own 11.81% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently added to or reduced their stakes in the business. Charles Schwab Investment Management Inc. increased its stake in Applied Digital by 36.5% in the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company's stock valued at $7,419,000 after purchasing an additional 240,554 shares during the last quarter. Quadrature Capital Ltd purchased a new stake in Applied Digital during the third quarter valued at about $545,000. Exchange Traded Concepts LLC grew its position in Applied Digital by 37.6% during the fourth quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company's stock valued at $7,656,000 after acquiring an additional 273,666 shares during the period. Barclays PLC grew its position in Applied Digital by 736.8% during the third quarter. Barclays PLC now owns 486,577 shares of the company's stock valued at $4,014,000 after acquiring an additional 428,428 shares during the period. Finally, SG Americas Securities LLC grew its position in Applied Digital by 414.5% during the fourth quarter. SG Americas Securities LLC now owns 265,792 shares of the company's stock valued at $2,031,000 after acquiring an additional 214,133 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.