Applied Digital (NASDAQ:APLD) Trading Down 8.7% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD)’s share price fell 8.7% during trading on Wednesday . The company traded as low as $4.63 and last traded at $4.64. 6,702,456 shares traded hands during trading, a decline of 74% from the average session volume of 26,032,365 shares. The stock had previously closed at $5.08.

Wall Street Analysts Forecast Growth

APLD has been the topic of several recent research reports. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research note on Monday, February 24th. Cantor Fitzgerald decreased 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. Northland Securities raised their price target on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 4th. Compass Point assumed coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They set a “buy” rating and a $10.00 price target on the stock. Finally, HC Wainwright lifted their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Wednesday, January 15th. Nine equities research analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital currently has an average rating of “Buy” and an average price target of $12.11.

Applied Digital Stock Performance

The firm has a 50 day moving average of $7.32 and a two-hundred day moving average of $7.97. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The stock has a market cap of $1.04 billion, a PE ratio of -2.69 and a beta of 5.18.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating 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 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 posted ($0.05) earnings per share. Applied Digital’s revenue for the quarter was up 51.3% on a year-over-year basis. Research analysts predict that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the completion of the sale, the director now directly owns 342,923 shares of the company’s stock, valued at $3,034,868.55. This represents a 5.51 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 11.81% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Large investors have recently modified their holdings of the stock. Charles Schwab Investment Management Inc. grew its holdings in Applied Digital by 36.5% during the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after acquiring an additional 240,554 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in shares of Applied Digital by 14.4% in the third quarter. The Manufacturers Life Insurance Company now owns 43,064 shares of the company’s stock valued at $355,000 after purchasing an additional 5,423 shares in the last quarter. FMR LLC grew its position in shares of Applied Digital by 99.1% in the third quarter. FMR LLC now owns 13,071 shares of the company’s stock valued at $108,000 after purchasing an additional 6,507 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in shares of Applied Digital during the 3rd quarter worth approximately $59,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in shares of Applied Digital during the 3rd quarter worth approximately $762,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

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.