Applied Digital (NASDAQ:APLD) Shares Down 5.4% After Insider Selling

Shares of Applied Digital Co. (NASDAQ:APLD) fell 5.4% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $7.18 and last traded at $7.18. 3,400,885 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 7,309,523 shares. The stock had previously closed at $7.59.

Specifically, Director Richard N. Nottenburg sold 19,369 shares of the stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $7.51, for a total transaction of $145,461.19. Following the completion of the transaction, the director now directly owns 384,317 shares in the company, valued at approximately $2,886,220.67. This trade represents a 4.80 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on APLD. Roth Mkm reiterated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a report on Thursday, October 10th. Needham & Company LLC restated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research note on Friday, November 1st. Lake Street Capital raised their price target on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Craig Hallum raised their price target on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Finally, HC Wainwright raised their price target on Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Six equities research analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital has an average rating of “Buy” and a consensus price target of $10.50.

Applied Digital Stock Performance

The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of -5.78 and a beta of 4.65. The stock has a 50-day moving average price of $7.21 and a 200-day moving average price of $5.51. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.13. The business had revenue of $60.70 million during the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The firm’s revenue for the quarter was up 67.2% compared to the same quarter last year. During the same period last year, the firm posted ($0.10) EPS. As a group, analysts forecast that Applied Digital Co. will post -0.4 earnings per share for the current year.

Institutional Trading of Applied Digital

Several hedge funds have recently added to or reduced their stakes in APLD. Vanguard Group Inc. lifted its holdings in Applied Digital by 70.2% during the 1st quarter. Vanguard Group Inc. now owns 6,176,073 shares of the company’s stock worth $26,434,000 after purchasing an additional 2,547,485 shares during the last quarter. Hood River Capital Management LLC raised its holdings in Applied Digital by 8.7% in the 2nd quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock valued at $57,098,000 after acquiring an additional 771,699 shares in the last quarter. Alight Capital Management LP acquired a new position in Applied Digital in the 2nd quarter valued at $3,570,000. Van ECK Associates Corp raised its holdings in Applied Digital by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company’s stock valued at $17,077,000 after acquiring an additional 443,699 shares in the last quarter. Finally, Thomist Capital Management LP acquired a new position in Applied Digital in the 2nd quarter valued at $2,529,000. 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.