Applied Digital (NASDAQ:APLD) Trading Down 2.3% - Should You Sell?

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price fell 2.3% during trading on Wednesday . The stock traded as low as $10.64 and last traded at $10.74. 10,998,980 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 39,285,656 shares. The stock had previously closed at $10.99.

Analysts Set New Price Targets

APLD has been the topic of several research analyst reports. Roth Capital restated a "buy" rating on shares of Applied Digital in a report on Monday, June 2nd. B. Riley raised their price target on Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. Citizens Jmp raised Applied Digital to a "strong-buy" rating and set a $12.00 price objective for the company in a research note on Thursday, May 22nd. HC Wainwright boosted their price objective on Applied Digital from $7.00 to $12.00 and gave the company a "buy" rating in a report on Tuesday, June 3rd. Finally, Needham & Company LLC restated a "buy" rating and set a $10.00 target price on shares of Applied Digital in a report on Monday, June 2nd. One investment analyst has rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $12.73.

Applied Digital Stock Down 3.5%

The business has a 50-day simple moving average of $7.17 and a 200-day simple moving average of $7.66. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.70 and a current ratio of 0.70. The company has a market cap of $2.39 billion, a price-to-earnings ratio of -7.74 and a beta of 6.08.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly 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 return on equity of 77.49% and a negative net margin of 109.99%. The firm had revenue of $52.92 million during the quarter, compared to analysts' expectations of $62.91 million. During the same quarter in the prior year, the firm earned ($0.24) EPS. On average, equities analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Rachel H. Lee sold 24,212 shares of the 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 now directly owns 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 filing with the SEC, which is accessible through the SEC website. Company insiders own 11.81% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Situational Awareness LP acquired a new stake in Applied Digital during the 1st quarter worth $22,680,000. Vanguard Group Inc. lifted its holdings in shares of Applied Digital by 39.1% during the fourth quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company's stock worth $97,487,000 after purchasing an additional 3,587,619 shares during the period. Tidal Investments LLC grew its position in Applied Digital by 14,635.7% in the 4th quarter. Tidal Investments LLC now owns 1,697,850 shares of the company's stock valued at $12,972,000 after buying an additional 1,686,328 shares during the last quarter. American Century Companies Inc. purchased a new position in Applied Digital during the 4th quarter worth $12,843,000. Finally, Geode Capital Management LLC boosted its holdings in shares of Applied Digital by 54.4% in the fourth quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company's stock valued at $36,117,000 after acquiring an additional 1,665,335 shares in the last quarter. Hedge funds and other 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.