Applied Digital (NASDAQ:APLD) Trading Down 7.6% - Should You Sell?

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares traded down 7.6% on Monday . The company traded as low as $9.35 and last traded at $9.66. 15,116,354 shares were traded during mid-day trading, a decline of 61% from the average session volume of 39,057,387 shares. The stock had previously closed at $10.45.

Analyst Ratings Changes

A number of research firms recently weighed in on APLD. B. Riley lifted their price target on Applied Digital from $8.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, June 4th. Craig Hallum lifted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Tuesday, June 3rd. Citizens Jmp upgraded Applied Digital to a "strong-buy" rating and set a $12.00 price target on the stock in a report on Thursday, May 22nd. HC Wainwright raised their price objective on Applied Digital from $7.00 to $12.00 and gave the company a "buy" rating in a research note on Tuesday, June 3rd. Finally, Cantor Fitzgerald dropped their price target on Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. One equities research analyst has rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $12.73.

Applied Digital Trading Down 4.6%

The stock has a market cap of $2.08 billion, a PE ratio of -6.73 and a beta of 6.04. 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 business has a 50-day moving average of $8.68 and a 200 day moving average of $7.73.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Monday, April 14th. The company reported ($0.16) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.05). Applied Digital had a negative net margin of 109.99% and a negative return on equity of 77.49%. The firm had revenue of $52.92 million during the quarter, compared to analyst estimates of $62.91 million. During the same period in the prior year, the firm earned ($0.24) EPS. Equities research analysts predict that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Activity

In related news, Director Rachel H. Lee sold 24,212 shares of the stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total transaction of $169,484.00. Following the transaction, the director directly owned 83,613 shares in the company, valued at approximately $585,291. This represents a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 11.81% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently modified their holdings of the stock. US Bancorp DE acquired a new stake in shares of Applied Digital during the 4th quarter worth $37,000. PNC Financial Services Group Inc. acquired a new position in shares of Applied Digital in the 1st quarter valued at about $28,000. Jones Financial Companies Lllp purchased a new stake in shares of Applied Digital during the 4th quarter worth about $39,000. Geneos Wealth Management Inc. increased its position in Applied Digital by 113.3% during the 1st 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 in the last quarter. Finally, CWM LLC increased its position in Applied Digital by 116.5% during the 1st quarter. CWM LLC now owns 9,506 shares of the company's stock worth $53,000 after purchasing an additional 5,116 shares in the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

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.