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

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $7.36, but opened at $6.85. Applied Digital shares last traded at $6.84, with a volume of 18,095,742 shares trading hands.

Wall Street Analyst Weigh In

APLD has been the topic of a number of analyst reports. Roth Mkm reiterated a "buy" rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Needham & Company LLC reiterated a "buy" rating and set a $11.00 price objective on shares of Applied Digital in a research report on Thursday, October 17th. Craig Hallum boosted their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Thursday, October 10th. Lake Street Capital boosted 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. Finally, HC Wainwright boosted their price objective on shares of Applied Digital from $5.00 to $10.00 and gave the company a "buy" rating in a research report on Wednesday, October 16th. Six research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $10.50.

Applied Digital Price Performance

The stock has a market capitalization of $1.46 billion, a PE ratio of -8.56 and a beta of 4.56. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock's 50 day moving average price is $6.60 and its 200-day moving average price is $5.21.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.28) by $0.13. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The firm had revenue of $60.70 million during the quarter, compared to analyst estimates of $54.85 million. During the same period in the previous year, the firm earned ($0.10) earnings per share. The business's revenue was up 67.2% on a year-over-year basis. As a group, equities analysts forecast that Applied Digital Co. will post -0.69 EPS for the current year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 80,000 shares of the company's stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $7.37, for a total value of $589,600.00. Following the completion of the sale, the director now directly owns 433,686 shares of the company's stock, valued at $3,196,265.82. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Thursday, October 17th. The shares were sold at an average price of $8.01, for a total transaction of $80,100.00. Following the completion of the sale, the director now directly owns 208,506 shares of the company's stock, valued at approximately $1,670,133.06. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 80,000 shares of the 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 sale, the director now directly owns 433,686 shares of the company's stock, valued at approximately $3,196,265.82. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 100,000 shares of company stock valued at $724,700 over the last three months. 20.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Several hedge funds have recently modified their holdings of the company. Hunter Associates Investment Management LLC lifted its position in shares of Applied Digital by 14.5% during the third quarter. Hunter Associates Investment Management LLC now owns 425,143 shares of the company's stock valued at $3,515,000 after buying an additional 53,809 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Applied Digital during the third quarter valued at about $88,000. Private Advisor Group LLC lifted its position in shares of Applied Digital by 159.7% during the third quarter. Private Advisor Group LLC now owns 38,700 shares of the company's stock valued at $319,000 after buying an additional 23,800 shares during the last quarter. Jade Capital Advisors LLC purchased a new stake in shares of Applied Digital during the third quarter valued at about $236,000. Finally, Exchange Traded Concepts LLC lifted its position in shares of Applied Digital by 4.9% during the third quarter. Exchange Traded Concepts LLC now owns 728,424 shares of the company's stock valued at $6,009,000 after buying an additional 34,166 shares during the last quarter. 65.67% of the stock is 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.