Applied Digital (NASDAQ:APLD) Shares Down 8.4% – Time to Sell?

Shares of Applied Digital Co. (NASDAQ:APLD) dropped 8.4% on Wednesday . The stock traded as low as $8.47 and last traded at $8.63. Approximately 6,398,726 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 14,245,130 shares. The stock had previously closed at $9.42.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on APLD shares. Craig Hallum lifted their target price on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Roth Mkm reissued a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Thursday, October 10th. B. Riley lifted their price target on shares of Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a report on Friday, September 13th. HC Wainwright increased their price objective on Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a report on Wednesday, October 16th. Finally, Cantor Fitzgerald initiated coverage on Applied Digital in a research note on Friday, December 20th. They set an “overweight” rating and a $15.00 target price on the stock. Seven investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $11.14.

Applied Digital Stock Down 7.4 %

The stock has a market capitalization of $1.84 billion, a price-to-earnings ratio of -7.45 and a beta of 4.78. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62. The business’s 50-day moving average is $8.56 and its two-hundred day moving average is $6.86.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.13. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. During the same period last year, the company earned ($0.10) EPS. The company’s revenue for the quarter was up 67.2% on a year-over-year basis. Equities analysts anticipate that Applied Digital Co. will post -0.4 EPS for the current year.

Insider Buying and Selling

In related news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Thursday, October 17th. The stock was sold at an average price of $8.01, for a total transaction of $80,100.00. Following the transaction, the director now owns 208,506 shares of the company’s stock, valued at approximately $1,670,133.06. This represents a 4.58 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the sale, the chief executive officer now directly owns 3,875,955 shares in the company, valued at $35,658,786. This represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 359,369 shares of company stock valued at $3,115,161. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. boosted its holdings in Applied Digital by 18.4% in the third quarter. JPMorgan Chase & Co. now owns 56,355 shares of the company’s stock valued at $465,000 after purchasing an additional 8,774 shares in the last quarter. Tidal Investments LLC purchased a new position in shares of Applied Digital in the 3rd quarter valued at $95,000. Virtu Financial LLC acquired a new stake in Applied Digital during the 3rd quarter worth $2,030,000. Geode Capital Management LLC raised its stake in Applied Digital by 48.7% during the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock worth $25,258,000 after acquiring an additional 1,002,862 shares in the last quarter. Finally, Barclays PLC lifted its position in Applied Digital by 736.8% in the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock valued at $4,014,000 after acquiring an additional 428,428 shares during the last quarter. 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.