Applied Digital (NASDAQ:APLD) Stock Falls 4.6% – Should You Sell?

Shares of Applied Digital Corporation (NASDAQ:APLD) dropped 4.6% during mid-day trading on Wednesday. The stock traded as low as $27.20 and last traded at $27.23. Approximately 13,512,125 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 22,790,334 shares. The stock had previously closed at $28.54.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on APLD shares. Wall Street Zen cut Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Craig Hallum boosted their price target on Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Needham & Company LLC restated a “buy” rating and issued a $83.00 price objective on shares of Applied Digital in a report on Tuesday, July 28th. Finally, Northland Securities set a $82.00 target price on shares of Applied Digital and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $60.88.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The stock’s 50 day simple moving average is $27.62 and its two-hundred day simple moving average is $32.70. The firm has a market capitalization of $7.65 billion, a PE ratio of -29.49 and a beta of 5.72.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The company had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. During the same quarter in the prior year, the firm earned ($0.24) earnings per share. The company’s revenue for the quarter was up 406.3% on a year-over-year basis. On average, sell-side analysts forecast that Applied Digital Corporation will post -1.09 EPS for the current year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the transaction, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of APLD. FNY Investment Advisers LLC purchased a new stake in shares of Applied Digital in the second quarter valued at about $37,000. Osbon Capital Management LLC purchased a new position in Applied Digital during the fourth quarter worth about $28,000. Bartlett & CO. Wealth Management LLC boosted its holdings in Applied Digital by 244.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock valued at $29,000 after purchasing an additional 855 shares during the last quarter. Ancora Advisors LLC acquired a new position in Applied Digital in the 2nd quarter valued at about $56,000. Finally, Creative Financial Designs Inc. ADV grew its stake in shares of Applied Digital by 691.8% in the 2nd quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock valued at $57,000 after buying an additional 1,342 shares during the period. 65.67% of the stock is owned by institutional investors and hedge funds.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company’s facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.