Applied Digital (NASDAQ:APLD) Stock Price Down 3% - Time to Sell?

Key Points

• Applied Digital's share price fell 3% to $36.64, with a notable increase in trading volume up by 11% compared to average daily trades.
• Analysts have recently upgraded the stock's ratings, with a consensus price target of $22.10 and multiple upgrades from a "sell" to a "hold" and "buy" ratings.
• The company reported earnings of ($0.03) per share, exceeding analysts' expectations of ($0.11), despite a revenue of $38.01 million that fell short of the estimated $52.25 million.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price dropped 3% during trading on Thursday . The company traded as low as $36.43 and last traded at $36.64. Approximately 40,748,998 shares changed hands during mid-day trading, an increase of 11% from the average daily volume of 36,794,586 shares. The stock had previously closed at $37.76.

Wall Street Analyst Weigh In

APLD has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Applied Digital from a "sell" rating to a "hold" rating in a report on Saturday, October 11th. HC Wainwright boosted their target price on shares of Applied Digital from $20.00 to $40.00 and gave the stock a "buy" rating in a report on Friday, October 10th. Northland Securities boosted their price target on Applied Digital to $40.00 and gave the stock an "outperform" rating in a research note on Friday, October 10th. Craig Hallum boosted their price target on Applied Digital from $12.00 to $23.00 and gave the stock a "buy" rating in a research note on Monday, August 18th. Finally, Citigroup restated an "outperform" rating on shares of Applied Digital in a research note on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $22.10.

Applied Digital Price Performance

The firm has a market cap of $10.25 billion, a PE ratio of -32.42 and a beta of 6.77. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The stock has a 50 day moving average price of $20.20 and a two-hundred day moving average price of $12.42.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, topping analysts' consensus estimates of ($0.11) by $0.08. The business had revenue of $38.01 million for the quarter, compared to analyst estimates of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The company's revenue was up 84.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.15) earnings per share. As a group, equities analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total value of $305,200.00. Following the sale, the director owned 297,987 shares in the company, valued at $4,547,281.62. This represents a 6.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Wes Cummins sold 400,000 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $6,104,000.00. Following the completion of the sale, the chief executive officer owned 2,659,379 shares in the company, valued at approximately $40,582,123.54. This represents a 13.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 506,250 shares of company stock worth $7,713,675 over the last quarter. Insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On Applied Digital

A number of large investors have recently bought and sold shares of the company. Farther Finance Advisors LLC boosted its position in Applied Digital by 51.8% in the third quarter. Farther Finance Advisors LLC now owns 2,306 shares of the company's stock valued at $53,000 after buying an additional 787 shares during the last quarter. Flagship Harbor Advisors LLC boosted its position in Applied Digital by 6.0% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock worth $160,000 after purchasing an additional 900 shares in the last quarter. Quantinno Capital Management LP boosted its position in Applied Digital by 1.6% in the 2nd quarter. Quantinno Capital Management LP now owns 68,417 shares of the company's stock worth $689,000 after purchasing an additional 1,063 shares in the last quarter. Corebridge Financial Inc. boosted its position in Applied Digital by 2.0% in the 1st quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock worth $546,000 after purchasing an additional 1,899 shares in the last quarter. Finally, Wedbush Securities Inc. boosted its position in Applied Digital by 14.8% in the 1st quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock worth $87,000 after purchasing an additional 2,000 shares in the last quarter. Hedge funds and other 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.

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