Applied Digital (NASDAQ:APLD) Shares Gap Down Following Insider Selling

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $6.58, but opened at $6.10. Applied Digital shares last traded at $6.18, with a volume of 3,008,103 shares traded.

Specifically, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $5.50, for a total value of $55,000.00. Following the completion of the sale, the director now directly owns 218,506 shares of the company's stock, valued at $1,201,783. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Needham & Company LLC reiterated a "buy" rating and issued a $11.00 price objective on shares of Applied Digital in a report on Monday. Roth Mkm reiterated a "buy" rating and set a $10.00 price target on shares of Applied Digital in a research note on Thursday, September 5th. HC Wainwright reissued a "buy" rating and issued a $5.00 price objective on shares of Applied Digital in a research note on Thursday, August 29th. Finally, B. Riley upped their target price on Applied Digital from $6.00 to $8.00 and gave the stock a "buy" rating in a research report on Friday, June 28th. Five investment analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital currently has an average rating of "Buy" and an average price target of $8.20.

Applied Digital Trading Down 2.1 %

The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.08 and a current ratio of 0.08. The company has a market capitalization of $883.63 million, a P/E ratio of -7.82 and a beta of 4.51. The company has a 50-day simple moving average of $4.86 and a 200 day simple moving average of $4.34.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 28th. The company reported ($0.52) earnings per share for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.29). Applied Digital had a negative net margin of 88.95% and a negative return on equity of 111.80%. The company had revenue of $43.70 million during the quarter, compared to the consensus estimate of $42.70 million. During the same period last year, the company earned ($0.07) earnings per share. Sell-side analysts expect that Applied Digital Co. will post -1.02 earnings per share for the current year.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Capital Research Global Investors grew its holdings in shares of Applied Digital by 427.2% during the 4th quarter. Capital Research Global Investors now owns 7,337,288 shares of the company's stock worth $49,453,000 after purchasing an additional 5,945,559 shares in the last quarter. Vanguard Group Inc. boosted its stake in Applied Digital by 70.2% during the first quarter. Vanguard Group Inc. now owns 6,176,073 shares of the company's stock worth $26,434,000 after buying an additional 2,547,485 shares in the last quarter. Van ECK Associates Corp increased its holdings in Applied Digital by 92.1% in the 1st quarter. Van ECK Associates Corp now owns 2,426,281 shares of the company's stock valued at $10,384,000 after buying an additional 1,163,247 shares during the period. Oasis Management Co Ltd. increased its holdings in Applied Digital by 23.6% in the 4th quarter. Oasis Management Co Ltd. now owns 4,928,129 shares of the company's stock valued at $33,216,000 after buying an additional 940,075 shares during the period. Finally, Hood River Capital Management LLC raised its stake in shares of Applied Digital by 8.7% in the 2nd quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company's stock valued at $57,098,000 after buying an additional 771,699 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

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.