Applied Digital (NASDAQ:APLD) Shares Down 17.7% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) fell 17.7% on Monday . The company traded as low as $8.60 and last traded at $8.77. 21,607,102 shares traded hands during trading, a decline of 16% from the average session volume of 25,842,811 shares. The stock had previously closed at $10.65.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on APLD shares. HC Wainwright boosted their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Wednesday, January 15th. Northland Securities boosted their price target on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday, February 4th. Compass Point began coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They set a “buy” rating and a $10.00 price objective on the stock. Cantor Fitzgerald decreased 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. Finally, Needham & Company LLC restated a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research report on Monday. Nine investment 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 a consensus price target of $12.11.

Applied Digital Price Performance

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 company has a market capitalization of $2.04 billion, a price-to-earnings ratio of -5.29 and a beta of 4.77. The stock’s 50-day simple moving average is $8.48 and its two-hundred day simple moving average is $7.52.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate 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 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 prior year, the firm earned ($0.05) EPS. The company’s revenue for the quarter was up 51.3% on a year-over-year basis. Equities research analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Activity

In related news, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the sale, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. This represents a 4.91 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard N. Nottenburg sold 50,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $460,000.00. Following the completion of the transaction, the director now directly owns 334,317 shares in the company, valued at $3,075,716.40. This trade represents a 13.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 270,000 shares of company stock worth $2,477,000 over the last quarter. 11.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hood River Capital Management LLC increased its stake in shares of Applied Digital by 10.7% in the 4th quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company’s stock worth $115,726,000 after acquiring an additional 1,464,854 shares during the last quarter. Vanguard Group Inc. increased its position in Applied Digital by 39.1% during the fourth quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company’s stock worth $97,487,000 after purchasing an additional 3,587,619 shares during the last quarter. Geode Capital Management LLC raised its stake in Applied Digital by 54.4% during the fourth quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company’s stock worth $36,117,000 after purchasing an additional 1,665,335 shares during the period. Van ECK Associates Corp raised its stake in Applied Digital by 113.8% during the fourth quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company’s stock worth $33,649,000 after purchasing an additional 2,344,572 shares during the period. Finally, Pertento Partners LLP boosted its holdings in Applied Digital by 49.0% in the 4th quarter. Pertento Partners LLP now owns 2,528,717 shares of the company’s stock valued at $19,319,000 after purchasing an additional 831,705 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.