Applied Digital (NASDAQ:APLD) Shares Down 1.9% - Should You Sell?

Key Points

• Applied Digital's shares fell by 1.9%, trading at $13.68, with a notable decline in trading volume, down 66% from the average.
• Multiple equities analysts have recently upgraded their ratings on Applied Digital, with targets ranging from $12.00 to $18.00, reflecting a generally bullish outlook.
• The company's latest earnings report showed a net loss of ($0.12) per share for the quarter, but revenue increased by 41.3% year-over-year to $38.01 million.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were down 1.9% during trading on Tuesday . The company traded as low as $13.55 and last traded at $13.68. Approximately 13,184,789 shares traded hands during trading, a decline of 66% from the average daily volume of 38,484,559 shares. The stock had previously closed at $13.95.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the company. Lake Street Capital upped their target price on Applied Digital from $14.00 to $18.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Needham & Company LLC increased their target price on Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Citigroup reissued an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. Craig Hallum raised their price target on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. Finally, Citizens Jmp upgraded Applied Digital to a "strong-buy" rating and set a $12.00 target price on the stock in a research report on Thursday, May 22nd. Twelve investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $14.18.

Applied Digital Stock Performance

The stock has a fifty day simple moving average of $10.49 and a 200-day simple moving average of $8.00. The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.77 and a current ratio of 0.77. The stock has a market cap of $3.80 billion, a P/E ratio of -13.32 and a beta of 6.17.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, hitting 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 for the quarter, compared to analysts' expectations of $42.86 million. During the same quarter in the previous year, the firm posted ($0.14) earnings per share. The company's revenue was up 41.3% on a year-over-year basis. On average, equities analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Transactions at Applied Digital

In related news, Director Rachel H. Lee sold 24,212 shares of the business's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the transaction, the director owned 83,613 shares in the company, valued at $585,291. The trade was a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 11.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors have recently made changes to their positions in APLD. Teacher Retirement System of Texas bought a new stake in Applied Digital in the 1st quarter worth about $139,000. Exchange Traded Concepts LLC raised its position in shares of Applied Digital by 4.0% during the 1st quarter. Exchange Traded Concepts LLC now owns 1,042,035 shares of the company's stock valued at $5,856,000 after buying an additional 39,945 shares in the last quarter. Register Financial Advisors LLC raised its position in shares of Applied Digital by 26.2% during the 1st quarter. Register Financial Advisors LLC now owns 254,200 shares of the company's stock valued at $1,429,000 after buying an additional 52,700 shares in the last quarter. Wells Fargo & Company MN raised its position in Applied Digital by 96.6% in the 4th quarter. Wells Fargo & Company MN now owns 119,963 shares of the company's stock worth $917,000 after purchasing an additional 58,943 shares during the period. Finally, Vanguard Group Inc. grew its holdings in Applied Digital by 39.1% in the 4th quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company's stock worth $97,487,000 after acquiring an additional 3,587,619 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company's stock.

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.

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