Applied Digital (NASDAQ:APLD) Stock Price Down 2.7% Following Insider Selling

Key Points

• Applied Digital Corporation's stock price dropped by 2.7% due to insider selling, with significant decreases in share trading volume down 78% from the average.
• CEO Wes Cummins sold 400,000 shares valued at $6.1 million, while CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares for approximately $1.1 million, indicating reduced ownership stakes by company executives.
• Analysts maintain a consensus rating of "Buy" for Applied Digital stock, with price targets ranging from $13.00 to $20.00, reflecting positive sentiment from several research firms.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price fell 2.7% on Monday following insider selling activity. The stock traded as low as $13.16 and last traded at $13.52. 8,150,488 shares changed hands during trading, a decline of 78% from the average session volume of 36,894,676 shares. The stock had previously closed at $13.89.

Specifically, CEO Wes Cummins sold 400,000 shares of Applied Digital stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total value of $6,104,000.00. Following the transaction, the chief executive officer owned 2,659,379 shares in the company, valued at $40,582,123.54. The trade was a 13.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of Applied Digital stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $1,144,500.00. Following the completion of the transaction, the chief financial officer owned 201,800 shares in the company, valued at $3,079,468. This trade represents a 27.10% decrease in their position. The disclosure for this sale can be found here. In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total value of $305,200.00. Following the completion of the sale, the director owned 297,987 shares of the company's stock, valued at approximately $4,547,281.62. This trade represents a 6.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

Several equities research analysts have weighed in on APLD shares. HC Wainwright raised their price target on Applied Digital from $15.00 to $20.00 and gave the stock a "buy" rating in a report on Monday, August 25th. B. Riley lifted their target price on Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a report on Wednesday, June 4th. Roth Capital reaffirmed a "buy" rating on shares of Applied Digital in a report on Monday, June 2nd. 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. Finally, Compass Point raised Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 target price for the company in a report on Friday, July 25th. One analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $15.64.

Applied Digital Trading Down 2.7%

The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.36. The company has a 50-day simple moving average of $12.82 and a 200 day simple moving average of $9.20. The firm has a market cap of $3.54 billion, a PE ratio of -12.40 and a beta of 6.65.

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 the consensus estimate of ($0.12). The business had revenue of $38.01 million for the quarter, compared to analyst estimates of $42.86 million. Applied Digital had a negative return on equity of 50.03% and a negative net margin of 107.22%.The business's quarterly revenue was up 41.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.14) EPS. As a group, sell-side analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Hood River Capital Management LLC raised its stake in shares of Applied Digital by 2.8% during the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock worth $220,120,000 after buying an additional 592,314 shares during the period. Vanguard Group Inc. raised its stake 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 buying an additional 730,978 shares during the period. Situational Awareness LP raised its stake in shares of Applied Digital by 63.3% during the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock worth $66,379,000 after buying an additional 2,556,200 shares during the period. BNP Paribas Financial Markets raised its stake in shares of Applied Digital by 24,356.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after buying an additional 5,198,223 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Applied Digital by 24.0% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock worth $26,799,000 after buying an additional 514,896 shares during the period. 65.67% of the stock is owned by institutional investors and hedge funds.

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.

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