Applied Digital (NASDAQ:APLD) Trading Down 3.7% - Time to Sell?

Key Points

• Applied Digital's stock fell by 3.7% to $22.59, with trading volume decreasing by 30% from its average.
• Analyst ratings remain positive, with a consensus price target of $15.64 and several firms rating the stock as a "Buy."
• Insider sales included CEO Wes Cummins selling 400,000 shares and CFO Mohammad Saidal Lavanw Mohmand selling 75,000 shares, indicating a notable decrease in their ownership stakes.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price dropped 3.7% on Thursday . The stock traded as low as $21.40 and last traded at $22.59. Approximately 25,474,782 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 36,610,352 shares. The stock had previously closed at $23.45.

Analyst Upgrades and Downgrades

APLD has been the topic of several research reports. JMP Securities increased their price target on shares of Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a report on Tuesday, June 3rd. Citigroup reaffirmed an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. Compass Point assumed coverage on shares of Applied Digital in a research note on Monday, September 15th. They set a "buy" rating on the stock. Needham & Company LLC raised their price objective 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. Finally, B. Riley raised their price objective 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. One research analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the stock. Based on data from MarketBeat.com, Applied Digital has an average rating of "Buy" and a consensus price target of $15.64.

Applied Digital Stock Performance

The stock has a market capitalization of $6.08 billion, a PE ratio of -20.72 and a beta of 6.64. The firm's fifty day moving average is $15.34 and its 200-day moving average is $10.22. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.36.

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

Insider Transactions at Applied Digital

In other news, CEO Wes Cummins sold 400,000 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the sale, the chief executive officer owned 2,659,379 shares of the company's stock, valued at approximately $40,582,123.54. This represents a 13.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the sale, the chief financial officer directly owned 201,800 shares in the company, valued at $3,079,468. This represents a 27.10% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 506,250 shares of company stock valued at $7,713,675. 11.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Flagship Harbor Advisors LLC boosted its holdings in shares of Applied Digital by 6.0% in the second quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock valued at $160,000 after acquiring an additional 900 shares during the period. Quantinno Capital Management LP raised its stake in shares of Applied Digital by 1.6% during the second 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 during the last quarter. Corebridge Financial Inc. raised its position in Applied Digital by 2.0% in the first quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock worth $546,000 after acquiring an additional 1,899 shares in the last quarter. Wedbush Securities Inc. raised its position in Applied Digital by 14.8% in the first quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock worth $87,000 after acquiring an additional 2,000 shares in the last quarter. Finally, Wellington Management Group LLP increased its position in shares of Applied Digital by 11.7% in the first quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock valued at $107,000 after buying an additional 2,001 shares in the last quarter. 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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