Applied Digital (NASDAQ:APLD) Shares Down 2.1% - Time to Sell?

Key Points

• Applied Digital's stock has seen a decline of 2.1%, trading at $13.94 with a significant drop in volume, indicating market volatility.
• Recent analyst recommendations show a mix of target price increases and decreases, with a consensus target price of $14.18 and twelve analysts rating the stock as a "buy."
• Applied Digital reported earnings of ($0.12) per share, matching expectations but falling short on revenue, which was up 41.3% year-over-year at $38.01 million.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 2.1% during mid-day trading on Friday . The stock traded as low as $13.78 and last traded at $13.94. Approximately 7,136,423 shares traded hands during trading, a decline of 81% from the average daily volume of 38,388,816 shares. The stock had previously closed at $14.24.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on APLD shares. Craig Hallum lifted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. Needham & Company LLC lifted 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. Roth Capital reissued a "buy" rating on shares of Applied Digital in a research note on Monday, June 2nd. Cantor Fitzgerald lowered their price objective on Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. Finally, 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 report on Thursday, July 31st. Twelve research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Applied Digital currently has an average rating of "Buy" and a consensus target price of $14.18.

Applied Digital Trading Down 2.6%

The stock has a market capitalization of $3.63 billion, a P/E ratio of -12.72 and a beta of 6.17. The firm's 50 day simple moving average is $11.06 and its two-hundred day simple moving average is $8.17. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, hitting the consensus estimate of ($0.12). Applied Digital had a negative return on equity of 50.03% and a negative net margin of 107.22%. The company had revenue of $38.01 million during the quarter, compared to analyst estimates of $42.86 million. During the same quarter last year, the firm posted ($0.14) EPS. The firm's revenue for the quarter was up 41.3% on a year-over-year basis. As a group, analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In other Applied Digital news, Director Rachel H. Lee sold 24,212 shares of the firm's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total value of $169,484.00. Following the sale, the director owned 83,613 shares of the company's stock, valued at $585,291. This trade represents a 22.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently bought and sold shares of the stock. SBI Securities Co. Ltd. grew its holdings in shares of Applied Digital by 37.0% during the 2nd quarter. SBI Securities Co. Ltd. now owns 41,900 shares of the company's stock valued at $422,000 after purchasing an additional 11,319 shares during the last quarter. Lisanti Capital Growth LLC purchased a new position in shares of Applied Digital in the second quarter worth $1,736,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Applied Digital by 26.6% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 144,993 shares of the company's stock worth $1,460,000 after acquiring an additional 30,507 shares during the last quarter. Fox Run Management L.L.C. purchased a new position in shares of Applied Digital in the second quarter valued at about $382,000. Finally, Atlantic Union Bankshares Corp purchased a new stake in shares of Applied Digital during the second quarter worth about $25,000. 65.67% of the stock is currently owned by institutional investors.

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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