Applied Digital (NASDAQ:APLD) Trading Down 2.7% - Should You Sell?

Applied Digital Co. (NASDAQ:APLD - Get Free Report) traded down 2.7% during mid-day trading on Friday . The company traded as low as $7.65 and last traded at $7.67. 6,020,193 shares were traded during trading, a decline of 75% from the average session volume of 23,701,330 shares. The stock had previously closed at $7.88.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on APLD shares. 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 on the stock. Needham & Company LLC restated a "buy" rating and set a $11.00 target price on shares of Applied Digital in a report on Wednesday, January 15th. HC Wainwright boosted their price target on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a research note on Wednesday, January 15th. Cantor Fitzgerald reduced their price objective on 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, Northland Securities increased their price objective on shares of Applied Digital from $12.00 to $20.00 and gave the stock an "outperform" rating in a report on Tuesday, February 4th. Nine research analysts have rated the stock with a buy rating, According to data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $12.11.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The stock has a market capitalization of $1.69 billion, a P/E ratio of -4.37 and a beta of 4.77. The stock has a 50-day simple moving average of $8.51 and a 200 day simple moving average of $7.24.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.08. The company had revenue of $63.87 million during 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 prior year, the company earned ($0.05) earnings per share. On average, equities analysts forecast that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 50,000 shares of Applied Digital stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $460,000.00. Following the transaction, the director now owns 334,317 shares in the company, valued at approximately $3,075,716.40. This trade represents a 13.01 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Wes Cummins sold 200,000 shares of the firm's stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction 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 disclosure for this sale can be found here. Insiders have sold 270,000 shares of company stock worth $2,477,000 in the last ninety days. Insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Several large investors have recently added to or reduced their stakes in the business. The Manufacturers Life Insurance Company boosted its position in shares of Applied Digital by 25.0% during the second quarter. The Manufacturers Life Insurance Company now owns 37,641 shares of the company's stock valued at $224,000 after buying an additional 7,517 shares during the last quarter. SG Americas Securities LLC purchased a new position in Applied Digital during the third quarter valued at approximately $426,000. Jade Capital Advisors LLC bought a new position in shares of Applied Digital in the third quarter worth $236,000. Private Advisor Group LLC boosted its position in shares of Applied Digital by 159.7% during the 3rd quarter. Private Advisor Group LLC now owns 38,700 shares of the company's stock valued at $319,000 after acquiring an additional 23,800 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in Applied Digital in the 3rd quarter worth approximately $88,000. 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.