Applied Digital (NASDAQ:APLD) Stock Price Down 9.4% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price traded down 9.4% during trading on Friday . The company traded as low as $27.78 and last traded at $27.86. 24,409,507 shares traded hands during trading, a decline of 31% from the average session volume of 35,137,730 shares. The stock had previously closed at $30.76.

Analyst Ratings Changes

A number of analysts recently weighed in on APLD shares. B. Riley restated a “buy” rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Northland Securities increased their price objective on shares of Applied Digital to $40.00 and gave the company an “outperform” rating in a research report on Friday, October 10th. HC Wainwright lifted their price objective on shares of Applied Digital from $20.00 to $40.00 and gave the stock a “buy” rating in a research report on Friday, October 10th. Citigroup reiterated an “outperform” rating on shares of Applied Digital in a research note on Thursday, October 9th. Finally, Wall Street Zen cut Applied Digital from a “hold” rating to a “sell” rating in a research note on Sunday, October 19th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $26.20.

Applied Digital Stock Performance

The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29. The firm’s fifty day moving average price is $29.84 and its 200-day moving average price is $19.59. The firm has a market cap of $7.78 billion, a price-to-earnings ratio of -24.65 and a beta of 6.94.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The firm had revenue of $64.22 million for the quarter, compared to analyst estimates of $52.25 million. During the same period last year, the business earned ($0.15) EPS. Applied Digital’s revenue for the quarter was up 84.3% compared to the same quarter last year. Analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Transactions at Applied Digital

In other Applied Digital news, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of the business’s stock in a transaction that occurred on Tuesday, October 28th. The stock was sold at an average price of $36.47, for a total value of $1,367,734.41. Following the completion of the sale, the chief financial officer owned 121,409 shares in the company, valued at approximately $4,427,786.23. The trade was a 23.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 9,375 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $35.91, for a total transaction of $336,656.25. Following the transaction, the director owned 249,237 shares in the company, valued at approximately $8,950,100.67. This trade represents a 3.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 328,035 shares of company stock worth $11,376,479. Insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. MRP Capital Investments LLC purchased a new stake in shares of Applied Digital in the third quarter valued at about $46,000. Allworth Financial LP increased its position in Applied Digital by 70.0% in the 3rd quarter. Allworth Financial LP now owns 1,746 shares of the company’s stock valued at $40,000 after acquiring an additional 719 shares during the period. IFP Advisors Inc purchased a new stake in Applied Digital during the 3rd quarter valued at approximately $144,000. Swiss Life Asset Management Ltd acquired a new stake in Applied Digital during the 3rd quarter worth approximately $232,000. Finally, CIBC Bancorp USA Inc. purchased a new position in shares of Applied Digital in the 3rd quarter valued at approximately $524,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.