Applied Digital (NASDAQ:APLD) Stock Price Down 1.3% Following Insider Selling

Key Points

• Applied Digital Corporation's shares fell by 1.3% to $14.01, significantly below the previous closing price of $14.20, with trading volume declining by 80% from its average.
• Despite the recent drop, the stock has an average equity research rating of "Buy," with 12 analysts rating it favorably, while the consensus price target stands at $14.18.
• The company reported a revenue of $38.01 million for the last quarter, which was below analysts' expectations, despite a year-over-year revenue increase of 41.3%.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price dropped 1.3% on Monday following insider selling activity. The company traded as low as $13.94 and last traded at $14.01. Approximately 7,708,765 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 38,254,832 shares. The stock had previously closed at $14.20.

Specifically, Director Richard N. Nottenburg sold 11,250 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $14.22, for a total value of $159,975.00. Following the completion of the transaction, the director owned 317,987 shares in the company, valued at $4,521,775.14. The trade was a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.

Wall Street Analyst Weigh In

APLD has been the subject of several recent analyst reports. Craig Hallum lifted 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 Tuesday, June 3rd. HC Wainwright lifted their price objective on shares of Applied Digital from $12.00 to $15.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. B. Riley lifted their price objective on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. JMP Securities lifted their price objective on shares of Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a research report on Tuesday, June 3rd. Finally, Needham & Company LLC lifted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Twelve investment analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $14.18.

Applied Digital Trading Down 3.7%

The stock has a market capitalization of $3.73 billion, a PE ratio of -13.07 and a beta of 6.17. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36. The business's 50-day moving average is $11.41 and its two-hundred day moving average is $8.31.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.12). Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The firm had revenue of $38.01 million during the quarter, compared to analysts' expectations of $42.86 million. During the same period in the previous year, the company earned ($0.14) earnings per share. Applied Digital's quarterly revenue was up 41.3% compared to the same quarter last year. On average, analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Applied Digital

Institutional investors and hedge funds have recently bought and sold shares of the stock. LPL Financial LLC raised its holdings in shares of Applied Digital by 58.4% in the fourth quarter. LPL Financial LLC now owns 180,902 shares of the company's stock valued at $1,382,000 after buying an additional 66,683 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Applied Digital by 294.6% in the fourth quarter. JPMorgan Chase & Co. now owns 222,383 shares of the company's stock valued at $1,699,000 after buying an additional 166,028 shares during the last quarter. Alliancebernstein L.P. raised its holdings in shares of Applied Digital by 102.3% in the fourth quarter. Alliancebernstein L.P. now owns 190,348 shares of the company's stock valued at $1,454,000 after buying an additional 96,238 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Applied Digital by 54.4% in the fourth quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company's stock valued at $36,117,000 after buying an additional 1,665,335 shares during the last quarter. Finally, Wells Fargo & Company MN raised its holdings in shares of Applied Digital by 96.6% in the fourth quarter. Wells Fargo & Company MN now owns 119,963 shares of the company's stock valued at $917,000 after buying an additional 58,943 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.