Applied Digital (NASDAQ:APLD) Shares Down 8.7% - Time to Sell?

Key Points

• Applied Digital's stock fell by 8.7%, closing at $12.00 after trading as low as $11.40, with significantly reduced trading volume of 22.8 million shares.
• Analysts have a consensus rating of "Buy" for Applied Digital, with the average price target being $14.18, indicating potential upside despite recent declines.
• The company reported quarterly revenue of $38.01 million, which was below analysts' expectations, but saw a 41.3% increase compared to the same quarter last year.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) traded down 8.7% during mid-day trading on Friday . The company traded as low as $11.40 and last traded at $12.00. 22,831,476 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 38,458,152 shares. The stock had previously closed at $13.14.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Compass Point upgraded shares of Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 price objective on the stock in a report on Friday, July 25th. Roth Capital reiterated a "buy" rating on shares of Applied Digital in a report on Monday, June 2nd. JMP Securities lifted their price objective on shares of Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a report on Tuesday, June 3rd. Needham & Company LLC lifted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a report on Thursday. Finally, Lake Street Capital lifted their price objective on shares of Applied Digital from $14.00 to $18.00 and gave the company a "buy" rating in a report on Thursday. Twelve equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $14.18.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.56, a current ratio of 0.70 and a quick ratio of 0.70. The stock's 50-day simple moving average is $10.39 and its 200 day simple moving average is $7.98. The stock has a market capitalization of $2.83 billion, a P/E ratio of -11.53 and a beta of 6.04.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) EPS 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 54.03%. 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 business posted ($0.14) earnings per share. The company's revenue for the quarter was up 41.3% compared to the same quarter last year. Research analysts expect that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Activity

In other news, Director Rachel H. Lee sold 24,212 shares of the business's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the sale, the director owned 83,613 shares of the company's stock, valued at approximately $585,291. The trade was a 22.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently modified their holdings of the business. PNC Financial Services Group Inc. bought a new stake in shares of Applied Digital in the first quarter valued at about $28,000. Geneos Wealth Management Inc. lifted its position in Applied Digital by 113.3% during the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after purchasing an additional 3,542 shares during the period. Ameriflex Group Inc. bought a new stake in Applied Digital during the second quarter worth about $42,000. CWM LLC lifted its position in Applied Digital by 116.5% during the first quarter. CWM LLC now owns 9,506 shares of the company's stock worth $53,000 after purchasing an additional 5,116 shares during the period. Finally, Semus Wealth Partners LLC bought a new stake in Applied Digital during the first quarter worth about $56,000. Institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.