Applied Digital (NASDAQ:APLD) Shares Down 8.5% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) shares dropped 8.5% during trading on Wednesday . The company traded as low as $6.69 and last traded at $6.81. Approximately 11,775,619 shares were traded during trading, a decline of 55% from the average daily volume of 26,174,971 shares. The stock had previously closed at $7.44.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on APLD shares. Cantor Fitzgerald cut their target price on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday, January 15th. Compass Point assumed coverage on shares of Applied Digital in a research report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price objective for the company. Needham & Company LLC restated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Monday, February 24th. 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. Finally, Northland Securities raised their price objective on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a report on Tuesday, February 4th. Nine equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $12.11.

Applied Digital Stock Performance

The company has a market cap of $1.48 billion, a price-to-earnings ratio of -3.84 and a beta of 4.69. 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’s fifty day simple moving average is $7.92 and its two-hundred day simple moving average is $8.02.

Applied Digital (NASDAQ:APLD) last posted its quarterly 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 firm had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. During the same quarter in the previous year, the business earned ($0.05) earnings per share. The firm’s quarterly revenue was up 51.3% compared to the same quarter last year. Equities research analysts anticipate that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the business’s stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the transaction, the director now owns 342,923 shares in the company, valued at $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 11.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently modified their holdings of APLD. Wilmington Savings Fund Society FSB boosted its stake in shares of Applied Digital by 100.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock valued at $31,000 after purchasing an additional 2,000 shares during the period. R Squared Ltd purchased a new position in Applied Digital in the 4th quarter valued at about $36,000. US Bancorp DE purchased a new position in Applied Digital in the 4th quarter valued at about $37,000. Jones Financial Companies Lllp acquired a new stake in shares of Applied Digital during the fourth quarter valued at about $39,000. Finally, Spire Wealth Management purchased a new stake in shares of Applied Digital during the fourth quarter worth about $43,000. 65.67% of the stock is currently owned by hedge funds and other 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.