Applied Digital (NASDAQ:APLD) Shares Gap Down - Time to Sell?

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $7.12, but opened at $6.55. Applied Digital shares last traded at $6.88, with a volume of 6,283,947 shares.

Wall Street Analyst Weigh In

APLD has been the subject of several research analyst reports. Cantor Fitzgerald reduced their target price on Applied Digital from $15.00 to $14.00 and set an "overweight" rating for the company in a research note on Wednesday, January 15th. Needham & Company LLC reiterated a "buy" rating and issued a $11.00 price target on shares of Applied Digital in a research note on Wednesday, January 15th. Northland Securities lifted 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. Compass Point assumed coverage on Applied Digital in a research note on Tuesday, January 28th. They set a "buy" rating and a $10.00 price objective on the stock. Finally, HC Wainwright lifted their target price on Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Wednesday, January 15th. Nine research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of $12.11.

Applied Digital Stock Down 1.1 %

The firm has a market cap of $1.74 billion, a price-to-earnings ratio of -4.50 and a beta of 4.77. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The stock's 50 day moving average is $8.58 and its 200 day moving average is $7.16.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate 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 net margin of 127.86% and a negative return on equity of 117.67%. The business's revenue for the quarter was up 51.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.05) EPS. Analysts forecast that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling

In other Applied Digital news, CEO Wes Cummins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the sale, the chief executive officer now owns 3,875,955 shares in the company, valued at $35,658,786. This represents a 4.91 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 transaction of $177,000.00. Following the sale, the director now directly owns 342,923 shares of the company's stock, valued at $3,034,868.55. This trade represents a 5.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 270,000 shares of company stock worth $2,477,000 in the last three months. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Wilmington Savings Fund Society FSB raised its stake in shares of Applied Digital by 100.0% in 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 in the last quarter. R Squared Ltd acquired a new position in 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 valued at approximately $37,000. Jones Financial Companies Lllp acquired a new stake in shares of Applied Digital in the fourth quarter worth $39,000. Finally, Spire Wealth Management bought a new stake in shares of Applied Digital during the 4th quarter worth $43,000. 65.67% of the stock is 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.