Applied Digital (NASDAQ:APLD) Shares Gap Down – Time to Sell?

Applied Digital Co. (NASDAQ:APLD)’s share price gapped down prior to trading on Monday . The stock had previously closed at $5.72, but opened at $5.34. Applied Digital shares last traded at $5.33, with a volume of 2,454,116 shares trading hands.

Analysts Set New Price Targets

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

Applied Digital Price Performance

The stock’s 50-day moving average price is $7.76 and its 200 day moving average price is $8.01. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of -3.20 and a beta of 4.69.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.08. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The company had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. During the same quarter in the prior year, the firm earned ($0.05) EPS. Applied Digital’s quarterly revenue was up 51.3% on a year-over-year basis. Equities research analysts expect that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the completion of the sale, the director now owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently bought and sold shares of the company. Wilmington Savings Fund Society FSB increased its holdings in shares of Applied Digital by 100.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after buying an additional 2,000 shares during the last quarter. R Squared Ltd acquired a new stake in Applied Digital during the fourth quarter worth $36,000. US Bancorp DE acquired a new stake in Applied Digital during the fourth quarter worth $37,000. Jones Financial Companies Lllp purchased a new stake in Applied Digital in the fourth quarter valued at $39,000. Finally, Spire Wealth Management acquired 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 institutional investors and hedge funds.

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.