Applied Digital (NASDAQ:APLD) Trading Down 5% - Time to Sell?

Key Points

• Applied Digital Corporation saw its share price decline by 5% to $15.77, with trading volume significantly down at 14.5 million shares compared to an average of 37.4 million.
• Despite the recent drop, analysts maintain a positive outlook, with a consensus average rating of "Buy" and a price target of $15.64.
• The company reported $38.01 million in quarterly revenue, below analyst expectations of $42.86 million, while also achieving a 41.3% year-over-year revenue growth.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price fell 5% during trading on Friday . The company traded as low as $15.65 and last traded at $15.77. 14,558,607 shares changed hands during trading, a decline of 61% from the average session volume of 37,448,219 shares. The stock had previously closed at $16.60.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on APLD. Roth Capital restated a "buy" rating on shares of Applied Digital in a research report on Monday, June 2nd. B. Riley upped their price objective on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. Needham & Company LLC upped their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Citizens Jmp upgraded shares of Applied Digital to a "strong-buy" rating and set a $12.00 price objective for the company in a research report on Thursday, May 22nd. Finally, Citigroup reaffirmed an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. One investment 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, the stock currently has an average rating of "Buy" and a consensus price target of $15.64.

Applied Digital Price Performance

The company has a market capitalization of $4.16 billion, a price-to-earnings ratio of -14.58 and a beta of 6.17. The company's 50 day simple moving average is $12.25 and its 200-day simple moving average is $8.95. 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 released its quarterly earnings results 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 company had revenue of $38.01 million for the quarter, compared to analysts' expectations of $42.86 million. During the same period last year, the company earned ($0.14) EPS. The firm's revenue for the quarter was up 41.3% compared to the same quarter last year. On average, equities research analysts predict 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 news, Director Richard N. Nottenburg sold 11,250 shares of the 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 transaction, the director directly owned 317,987 shares in the company, valued at $4,521,775.14. This represents a 3.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Hood River Capital Management LLC lifted its holdings in shares of Applied Digital by 2.8% during the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock worth $220,120,000 after acquiring an additional 592,314 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Applied Digital by 5.7% during the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock worth $75,819,000 after acquiring an additional 730,978 shares during the period. Situational Awareness LP lifted its holdings in shares of Applied Digital by 63.3% during the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock worth $66,379,000 after acquiring an additional 2,556,200 shares during the period. BNP Paribas Financial Markets lifted its holdings in shares of Applied Digital by 24,356.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after acquiring an additional 5,198,223 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Applied Digital by 24.0% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock worth $26,799,000 after acquiring an additional 514,896 shares during the period. 65.67% of the stock is currently 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.

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