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

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $8.18, but opened at $7.95. Applied Digital shares last traded at $7.97, with a volume of 446,605 shares trading hands.

Analyst Ratings Changes

Several analysts have recently commented on APLD shares. Needham & Company LLC restated a "buy" rating and set a $11.00 target price on shares of Applied Digital in a report on Thursday. Lake Street Capital raised their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the company a "buy" rating in a research report on Thursday, October 10th. HC Wainwright increased their price target on shares of Applied Digital from $5.00 to $10.00 and gave the company a "buy" rating in a research note on Wednesday, October 16th. B. Riley boosted their price objective on shares of Applied Digital from $8.00 to $9.00 and gave the stock a "buy" rating in a research report on Friday, September 13th. Finally, Craig Hallum increased their price objective on Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Thursday, October 10th. Six equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $10.50.

Applied Digital Trading Up 6.5 %

The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 1.14. The company has a fifty day simple moving average of $5.92 and a two-hundred day simple moving average of $4.93. The stock has a market capitalization of $1.20 billion, a P/E ratio of -10.28 and a beta of 4.56.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.13. The company had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 107.05%. The firm's revenue was up 67.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.10) earnings per share. On average, sell-side analysts expect that Applied Digital Co. will post -1.12 earnings per share for the current year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 80,000 shares of the business's stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $7.37, for a total value of $589,600.00. Following the sale, the director now owns 433,686 shares in the company, valued at approximately $3,196,265.82. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In other news, Director Richard N. Nottenburg sold 80,000 shares of the business's stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $7.37, for a total transaction of $589,600.00. Following the transaction, the director now directly owns 433,686 shares in the company, valued at $3,196,265.82. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $5.50, for a total transaction of $55,000.00. Following the completion of the transaction, the director now directly owns 218,506 shares in the company, valued at $1,201,783. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 20.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Principal Financial Group Inc. acquired a new stake in Applied Digital in the first quarter valued at $50,000. Headlands Technologies LLC raised its holdings in Applied Digital by 381.8% during the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company's stock worth $52,000 after purchasing an additional 6,933 shares during the last quarter. ARS Investment Partners LLC bought a new stake in shares of Applied Digital in the 2nd quarter valued at $60,000. Price T Rowe Associates Inc. MD increased its position in shares of Applied Digital by 15.3% during the first quarter. Price T Rowe Associates Inc. MD now owns 24,018 shares of the company's stock worth $103,000 after buying an additional 3,182 shares during the period. Finally, Crumly & Associates Inc. bought a new position in Applied Digital during the second quarter worth $110,000. 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.