Applied Digital (NASDAQ:APLD) Shares Down 1.5% - Time to Sell?

Key Points

• Applied Digital Corporation's stock price declined by 1.5%, trading at $16.22 with a significant drop in trading volume, approximately 77% lower than the average.
• Multiple analysts have upgraded APLD's ratings, with a consensus rating of "Buy" and an average price target of $15.64, demonstrating optimism in the stock's future performance.
• In its latest earnings report, the company met expectations with an EPS of (-$0.12) and reported a revenue of $38.01 million, which was below expectations, despite a year-over-year revenue increase of 41.3%.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) fell 1.5% during trading on Wednesday . The company traded as low as $16.08 and last traded at $16.22. 8,570,645 shares changed hands during trading, a decline of 77% from the average session volume of 37,536,363 shares. The stock had previously closed at $16.47.

Analysts Set New Price Targets

A number of research firms have recently commented on APLD. Citizens Jmp raised shares of Applied Digital to a "strong-buy" rating and set a $12.00 target price for the company in a research note on Thursday, May 22nd. B. Riley boosted their target price on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research note on Wednesday, June 4th. Citigroup reissued an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. HC Wainwright boosted their target price on shares of Applied Digital from $15.00 to $20.00 and gave the stock a "buy" rating in a research note on Monday, August 25th. Finally, Needham & Company LLC boosted their target price on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $15.64.

Applied Digital Trading Down 3.7%

The stock has a market capitalization of $4.18 billion, a price-to-earnings ratio of -14.66 and a beta of 6.17. The company's 50-day moving average is $12.37 and its 200-day moving average is $9.01. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.12). Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The firm had revenue of $38.01 million during the quarter, compared to analysts' expectations of $42.86 million. During the same period last year, the business earned ($0.14) earnings per share. Applied Digital's revenue was up 41.3% compared to the same quarter last year. Research analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 11,250 shares of Applied Digital stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $14.22, for a total transaction of $159,975.00. Following the completion of the sale, the director directly owned 317,987 shares in the company, valued at $4,521,775.14. This trade represents a 3.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 11.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently made changes to their positions in APLD. Atlantic Union Bankshares Corp acquired a new stake in shares of Applied Digital during the second quarter valued at about $25,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Applied Digital in the second quarter valued at approximately $26,000. PNC Financial Services Group Inc. purchased a new position in shares of Applied Digital in the first quarter valued at approximately $28,000. Geneos Wealth Management Inc. boosted its stake in shares of Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after purchasing an additional 3,542 shares during the period. Finally, Ameriflex Group Inc. purchased a new position in shares of Applied Digital in the second quarter valued at approximately $42,000. 65.67% of the stock is currently 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.