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 $8.18, but opened at $7.95. Applied Digital shares last traded at $7.97, with a volume of 446,605 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the company. Needham & Company LLC reissued a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research note on Thursday. Roth Mkm restated a “buy” rating and set a $10.00 price target on shares of Applied Digital in a report on Thursday, October 10th. B. Riley increased their target price on shares of Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Friday, September 13th. Craig Hallum boosted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Finally, HC Wainwright upped their target price on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Six research analysts have rated the stock with a buy rating, According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $10.50.

Applied Digital Stock Performance

The stock’s 50-day simple moving average is $5.92 and its 200 day simple moving average is $4.93. The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 1.14. The stock has a market capitalization of $1.10 billion, a price-to-earnings ratio of -10.28 and a beta of 4.56.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) EPS for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.13. Applied Digital had a negative return on equity of 107.05% and a negative net margin of 74.95%. The firm had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. During the same period last year, the company earned ($0.10) EPS. The business’s quarterly revenue was up 67.2% compared to the same quarter last year. Analysts expect that Applied Digital Co. will post -1.12 earnings per share for the current fiscal year.

Insider Activity

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $5.50, for a total value of $55,000.00. Following the transaction, the director now directly owns 218,506 shares of the company’s stock, valued at approximately $1,201,783. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $5.50, for a total value of $55,000.00. Following the sale, the director now directly owns 218,506 shares in the company, valued at $1,201,783. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Richard N. Nottenburg sold 80,000 shares of the firm’s stock in a transaction dated Monday, October 14th. The stock was sold at an average price of $7.37, for a total value of $589,600.00. Following the sale, the director now directly owns 433,686 shares in the company, valued at approximately $3,196,265.82. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders own 20.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Nomura Holdings Inc. bought a new position in shares of Applied Digital during the 4th quarter worth approximately $183,000. Register Financial Advisors LLC boosted its holdings in shares of Applied Digital by 74.0% in the 1st quarter. Register Financial Advisors LLC now owns 323,400 shares of the company’s stock valued at $1,384,000 after buying an additional 137,500 shares during the last quarter. Woodmont Investment Counsel LLC increased its holdings in Applied Digital by 4.2% during the first quarter. Woodmont Investment Counsel LLC now owns 250,319 shares of the company’s stock worth $1,071,000 after buying an additional 10,149 shares during the last quarter. Principal Financial Group Inc. bought a new position in shares of Applied Digital in the 1st quarter valued at about $50,000. Finally, Van ECK Associates Corp boosted its stake in Applied Digital by 92.1% in the 1st quarter. Van ECK Associates Corp now owns 2,426,281 shares of the company’s stock valued at $10,384,000 after purchasing an additional 1,163,247 shares during the period. 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.