Applied Digital (NASDAQ:APLD) Shares Gap Down – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) gapped down before the market opened on Monday . The stock had previously closed at $5.72, but opened at $5.34. Applied Digital shares last traded at $5.33, with a volume of 2,454,116 shares changing hands.

Wall Street Analyst Weigh In

APLD has been the subject of several recent research reports. Needham & Company LLC reissued a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research report on Monday, February 24th. HC Wainwright boosted their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday, January 15th. Northland Securities increased their price target on shares of Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a research report on Tuesday, February 4th. Cantor Fitzgerald cut their price objective on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 15th. Finally, Compass Point began coverage on shares of Applied Digital in a research report on Tuesday, January 28th. They set a “buy” rating and a $10.00 target price for the company. Nine research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital currently has an average rating of “Buy” and an average target price of $12.11.

Applied Digital Trading Down 3.1 %

The stock’s fifty day simple moving average is $7.76 and its 200-day simple moving average is $8.01. 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 firm has a market cap of $1.23 billion, a PE ratio of -3.20 and a beta of 4.69.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.08. The company had revenue of $63.87 million during the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The firm’s quarterly revenue was up 51.3% on a year-over-year basis. During the same quarter last year, the business posted ($0.05) EPS. On average, sell-side analysts forecast that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the sale, the director now directly owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 11.81% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently modified their holdings of APLD. Wilmington Savings Fund Society FSB grew its holdings in Applied Digital by 100.0% during the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after acquiring an additional 2,000 shares during the period. R Squared Ltd acquired a new stake in shares of Applied Digital during the 4th quarter worth approximately $36,000. US Bancorp DE purchased a new position in shares of Applied Digital during the 4th quarter valued at approximately $37,000. Jones Financial Companies Lllp purchased a new stake in Applied Digital during the fourth quarter worth $39,000. Finally, Spire Wealth Management purchased a new stake in Applied Digital during the fourth quarter worth $43,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.