Applied Digital (NASDAQ:APLD) Shares Down 1.2% - Should You Sell?

Applied Digital Co. (NASDAQ:APLD - Get Free Report)'s stock price was down 1.2% during mid-day trading on Tuesday . The company traded as low as $7.87 and last traded at $8.01. Approximately 4,918,472 shares changed hands during trading, a decline of 79% from the average daily volume of 23,268,408 shares. The stock had previously closed at $8.11.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. HC Wainwright lifted their price target on 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 reiterated a "buy" rating and issued a $11.00 price target on shares of Applied Digital in a research report on Wednesday, January 15th. Northland Securities increased their price target on shares of Applied Digital from $12.00 to $20.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 4th. Cantor Fitzgerald dropped their price objective 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. Finally, Compass Point assumed coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They set a "buy" rating and a $10.00 target price for the company. Nine analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, Applied Digital currently has a consensus rating of "Buy" and a consensus price target of $12.11.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The stock has a fifty day simple moving average of $8.40 and a two-hundred day simple moving average of $7.30.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating analysts' consensus estimates of ($0.14) by $0.08. The firm had revenue of $63.87 million for the quarter, compared to the consensus estimate of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The company'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 business earned ($0.05) earnings per share. Analysts expect that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Activity

In related news, CEO Wes Cummins sold 200,000 shares of the firm's stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the transaction, the chief executive officer now directly owns 3,875,955 shares of the company's stock, valued at $35,658,786. This trade represents a 4.91 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 20,000 shares of the business'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 sale, the director now owns 342,923 shares in the company, valued at approximately $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 270,000 shares of company stock worth $2,477,000 in the last 90 days. 11.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently added to or reduced their stakes in APLD. Wilmington Savings Fund Society FSB grew its position 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 valued at $31,000 after purchasing an additional 2,000 shares during the last quarter. R Squared Ltd purchased a new stake in Applied Digital in the 4th quarter valued at approximately $36,000. US Bancorp DE acquired a new stake in Applied Digital during the 4th quarter valued at $37,000. Jones Financial Companies Lllp purchased a new position in Applied Digital during the fourth quarter worth $39,000. Finally, Spire Wealth Management acquired a new position in shares of Applied Digital in the fourth quarter worth $43,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.