Applied Digital (NASDAQ:APLD) Stock Price Down 1.7% - Should You Sell?

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) were down 1.7% during trading on Thursday . The stock traded as low as $7.87 and last traded at $7.96. Approximately 5,825,423 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 24,066,564 shares. The stock had previously closed at $8.10.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Compass Point initiated coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They issued a "buy" rating and a $10.00 price objective for the company. HC Wainwright boosted their price target on Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a report on Wednesday, January 15th. Cantor Fitzgerald lowered their price target on Applied Digital from $15.00 to $14.00 and set an "overweight" rating for the company in a report on Wednesday, January 15th. Northland Securities upped their price objective 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. Finally, Needham & Company LLC reissued a "buy" rating and set a $11.00 target price on shares of Applied Digital in a research report on Wednesday, January 15th. Nine analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital 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 firm has a 50 day simple moving average of $8.55 and a 200-day simple moving average of $7.22. The company has a market cap of $1.74 billion, a price-to-earnings ratio of -4.50 and a beta of 4.78.

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

Insider Buying and Selling at Applied Digital

In related news, CEO Wes Cummins sold 200,000 shares of the business'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 transaction of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares in the company, valued at $35,658,786. The trade was a 4.91 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard N. Nottenburg sold 20,000 shares of the business's stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the transaction, the director now owns 342,923 shares of the company's stock, valued at $3,034,868.55. This 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 over the last quarter. 11.81% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently made changes to their positions in the business. Charles Schwab Investment Management Inc. boosted its position in shares of Applied Digital by 36.5% during the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company's stock worth $7,419,000 after buying an additional 240,554 shares during the period. Quadrature Capital Ltd acquired a new position in shares of Applied Digital during the third quarter valued at $545,000. Exchange Traded Concepts LLC increased its holdings in shares of 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 purchasing an additional 273,666 shares during the period. Barclays PLC increased its holdings in shares of 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 purchasing an additional 428,428 shares during the period. Finally, SG Americas Securities LLC increased its holdings in shares of 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 purchasing an additional 214,133 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.