Applied Digital (NASDAQ:APLD) Shares Down 6.1% - Should You Sell?

Key Points

• Shares fell 6.1% to $31.08 midday (prior close $33.09) with ~20.23M shares trading, about 44% below the stock's average daily volume.
• Analyst sentiment is mixed: MarketBeat shows a consensus rating of Moderate Buy (1 Strong Buy, 11 Buy, 1 Sell), but the average price target is $26.20, below the current share price.
• Quarterly results: EPS of -$0.03 beat estimates while revenue of $38.0M missed expectations despite 84% YoY growth; the company remains unprofitable and insiders sold ~834,285 shares (~$19.1M) in the last three months.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 6.1% during mid-day trading on Thursday . The company traded as low as $31.03 and last traded at $31.08. Approximately 20,227,999 shares traded hands during trading, a decline of 44% from the average daily volume of 36,169,355 shares. The stock had previously closed at $33.09.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on APLD shares. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research report on Wednesday, October 8th. Craig Hallum increased their price target on Applied Digital to $39.00 and gave the stock a "buy" rating in a report on Thursday, October 23rd. Wall Street Zen downgraded Applied Digital from a "hold" rating to a "sell" rating in a report on Sunday, October 19th. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a report on Thursday, October 9th. Finally, B. Riley reiterated a "buy" rating on shares of Applied Digital in a report on Wednesday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $26.20.

Applied Digital Price Performance

The firm has a fifty day simple moving average of $25.72 and a 200 day simple moving average of $15.52. The company has a market capitalization of $8.84 billion, a PE ratio of -27.50 and a beta of 6.77. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.11) by $0.08. The company had revenue of $38.01 million for the quarter, compared to the consensus estimate of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.Applied Digital's quarterly revenue was up 84.3% on a year-over-year basis. During the same period last year, the business posted ($0.15) EPS. Equities analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Ella G. Benson sold 42,569 shares of the firm's stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $35.30, for a total transaction of $1,502,685.70. Following the transaction, the director directly owned 69,256 shares in the company, valued at $2,444,736.80. This trade represents a 38.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Chuck Hastings sold 50,000 shares of the firm's stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $35.69, for a total value of $1,784,500.00. Following the transaction, the director owned 451,612 shares in the company, valued at $16,118,032.28. The trade was a 9.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 834,285 shares of company stock worth $19,090,154 over the last three months. Corporate insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Atlantic Union Bankshares Corp bought a new stake in Applied Digital during the 2nd quarter valued at $25,000. Northwestern Mutual Wealth Management Co. bought a new stake in Applied Digital during the 2nd quarter valued at $26,000. Dagco Inc. bought a new stake in Applied Digital during the 3rd quarter valued at $27,000. PNC Financial Services Group Inc. bought a new stake in Applied Digital during the 1st quarter valued at $28,000. Finally, Evolution Wealth Management Inc. boosted its position in Applied Digital by 101.8% during the 3rd quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company's stock valued at $37,000 after acquiring an additional 807 shares in the last quarter. 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.

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