Applied Digital (NASDAQ:APLD) Shares Down 2.1% - Time to Sell?

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares fell 2.1% on Tuesday . The company traded as low as $12.60 and last traded at $12.75. 24,259,948 shares were traded during mid-day trading, a decline of 37% from the average session volume of 38,661,836 shares. The stock had previously closed at $13.02.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the company. 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. Compass Point reissued a "neutral" rating and issued a $13.00 price target (up previously from $10.00) on shares of Applied Digital in a research note on Monday. Needham & Company LLC reiterated a "buy" rating and issued a $10.00 target price on shares of Applied Digital in a research report on Monday, June 2nd. Citigroup restated an "outperform" rating on shares of Applied Digital in a research report on Tuesday, June 3rd. Finally, HC Wainwright lifted their price objective on Applied Digital from $7.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. 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's stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $12.73.

Applied Digital Price Performance

The stock's 50 day moving average is $6.71 and its two-hundred day moving average is $7.63. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The stock has a market capitalization of $2.52 billion, a PE ratio of -6.46 and a beta of 6.08.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced 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). The firm had revenue of $52.92 million during the quarter, compared to analyst estimates of $62.91 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. During the same quarter in the previous year, the business posted ($0.24) earnings per share. As a group, sell-side analysts forecast that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,212 shares of the company's 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 completion of the transaction, the director now owns 83,613 shares in the company, valued at approximately $585,291. This represents a 22.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 11.81% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Hood River Capital Management LLC grew its holdings in shares of Applied Digital by 10.7% during the fourth quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company's stock worth $115,726,000 after purchasing an additional 1,464,854 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of Applied Digital by 5.7% in the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock valued at $75,819,000 after purchasing an additional 730,978 shares during the period. Geode Capital Management LLC grew its stake in Applied Digital by 54.4% during the 4th quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company's stock worth $36,117,000 after buying an additional 1,665,335 shares during the last quarter. Van ECK Associates Corp increased its position in Applied Digital by 113.8% during the fourth quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company's stock worth $33,649,000 after buying an additional 2,344,572 shares during the period. Finally, Situational Awareness LP purchased a new stake in Applied Digital in the first quarter valued at approximately $22,680,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.