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

Applied Digital Co. (NASDAQ:APLD - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $6.83, but opened at $6.45. Applied Digital shares last traded at $6.45, with a volume of 7,197,205 shares.

Analysts Set New Price Targets

Several analysts have commented on APLD shares. Cantor Fitzgerald reduced their price objective on Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research note on Tuesday, April 15th. Northland Securities upped their price target on Applied Digital from $12.00 to $20.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 4th. Citizens Jmp raised shares of Applied Digital to a "strong-buy" rating and set a $12.00 price objective on the stock in a research note on Thursday. Compass Point started coverage on shares of Applied Digital in a research report on Tuesday, January 28th. They set a "buy" rating and a $10.00 price objective for the company. Finally, HC Wainwright lowered their target price on shares of Applied Digital from $12.00 to $7.00 and set a "buy" rating on the stock in a report on Tuesday, April 15th. Ten research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $10.91.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The stock's fifty day moving average price is $5.56 and its 200-day moving average price is $7.40. The firm has a market cap of $1.65 billion, a PE ratio of -4.25 and a beta of 5.98.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Monday, April 14th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.05). Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The company had revenue of $52.92 million during the quarter, compared to analysts' expectations of $62.91 million. During the same period last year, the business posted ($0.24) earnings per share. As a group, equities analysts forecast that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,212 shares of Applied Digital stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total transaction of $169,484.00. Following the completion of the transaction, the director now owns 83,613 shares of the company's stock, valued at $585,291. The trade was a 22.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 11.81% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds have recently added to or reduced their stakes in the business. Hood River Capital Management LLC lifted its holdings in shares of Applied Digital by 10.7% in the fourth quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company's stock valued at $115,726,000 after purchasing an additional 1,464,854 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Applied Digital by 5.7% during the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock worth $75,819,000 after purchasing an additional 730,978 shares during the last quarter. Geode Capital Management LLC lifted its stake in Applied Digital by 54.4% in the 4th quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company's stock valued at $36,117,000 after buying an additional 1,665,335 shares in the last quarter. Van ECK Associates Corp lifted its stake in Applied Digital by 113.8% in the 4th quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company's stock valued at $33,649,000 after buying an additional 2,344,572 shares in the last quarter. Finally, Situational Awareness LP acquired a new stake in Applied Digital during the 1st quarter valued at $22,680,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.