Applied Digital (NASDAQ:APLD) Shares Down 1.5% - What's Next?

Key Points

• Applied Digital Corporation's shares fell 1.5% during trading, reaching a low of $26.31, with a significant decrease in trading volume compared to the average.
• Recent analyst reports show a positive outlook for Applied Digital, with multiple firms raising their price targets and issuing "buy" ratings, setting an average target of $15.64.
• Insider selling activity included CFO Mohammad Saidal Lavanw Mohmand and CEO Wes Cummins, who collectively sold over 475,000 shares, indicating a reduction in their equity positions in the company.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 1.5% during trading on Tuesday . The stock traded as low as $26.31 and last traded at $27.30. Approximately 29,860,191 shares changed hands during trading, a decline of 18% from the average daily volume of 36,194,703 shares. The stock had previously closed at $27.71.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on APLD shares. HC Wainwright boosted their price objective on Applied Digital from $15.00 to $20.00 and gave the stock a "buy" rating in a report on Monday, August 25th. Craig Hallum boosted their price target on Applied Digital from $12.00 to $23.00 and gave the company a "buy" rating in a research note on Monday, August 18th. Compass Point started coverage on Applied Digital in a research report on Monday, September 15th. They set a "buy" rating on the stock. Lake Street Capital boosted their target price on shares of Applied Digital from $14.00 to $18.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Needham & Company LLC upped their price target on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Applied Digital presently has an average rating of "Moderate Buy" and a consensus price target of $15.64.

Applied Digital Price Performance

The firm has a market capitalization of $7.48 billion, a P/E ratio of -25.05 and a beta of 6.77. 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 $17.47 and its 200-day moving average is $11.25.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its 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 return on equity of 50.03% and a negative net margin of 107.22%.The firm had revenue of $38.01 million for the quarter, compared to the consensus estimate of $42.86 million. During the same quarter last year, the business posted ($0.14) EPS. The company's revenue was up 41.3% compared to the same quarter last year. As a group, sell-side analysts predict that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $1,144,500.00. Following the completion of the transaction, the chief financial officer owned 201,800 shares of the company's stock, valued at approximately $3,079,468. This represents a 27.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Wes Cummins sold 400,000 shares of the business's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the sale, the chief executive officer directly owned 2,659,379 shares in the company, valued at approximately $40,582,123.54. The trade was a 13.07% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 506,250 shares of company stock valued at $7,713,675. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Atlantic Union Bankshares Corp acquired a new stake in Applied Digital during the 2nd quarter valued at approximately $25,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Applied Digital during the second quarter worth $26,000. PNC Financial Services Group Inc. bought a new position in Applied Digital during the first quarter worth $28,000. Geneos Wealth Management Inc. lifted its holdings in Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after buying an additional 3,542 shares during the period. Finally, Ameriflex Group Inc. bought a new stake in Applied Digital during the second quarter valued at $42,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.

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