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

by · The Cerbat Gem

Applied Digital Corporation (NASDAQ:APLD – Get Free Report)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $27.78, but opened at $26.82. Applied Digital shares last traded at $27.52, with a volume of 1,653,207 shares changing hands.

Wall Street Analyst Weigh In

APLD has been the topic of several analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Compass Point initiated coverage on Applied Digital in a research note on Monday, September 15th. They set a “buy” rating on the stock. Wall Street Zen cut Applied Digital from a “hold” rating to a “sell” rating in a research note on Sunday, October 19th. B. Riley reissued a “buy” rating on shares of Applied Digital in a report on Wednesday, October 22nd. Finally, Craig Hallum upped their price objective on shares of Applied Digital to $39.00 and gave the stock a “buy” rating in a report on Thursday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Applied Digital presently has an average rating of “Moderate Buy” and a consensus target price of $26.20.

Get Our Latest Analysis on Applied Digital

Applied Digital Price Performance

The company has a 50 day moving average of $29.21 and a two-hundred day moving average of $20.30. The firm has a market cap of $7.38 billion, a P/E ratio of -23.39 and a beta of 6.95. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29.

Applied Digital (NASDAQ:APLD – Get Free Report) last issued its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates 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 company had revenue of $64.22 million during the quarter, compared to the consensus estimate of $52.25 million. During the same period in the prior year, the company earned ($0.15) EPS. Applied Digital’s revenue was up 84.3% on a year-over-year basis. Sell-side analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity

In related news, Director Chuck Hastings sold 25,000 shares of Applied Digital stock in a transaction on Friday, October 31st. The stock was sold at an average price of $34.27, for a total value of $856,750.00. Following the transaction, the director directly owned 426,612 shares in the company, valued at $14,619,993.24. The trade was a 5.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Rachel H. Lee sold 24,213 shares of the business’s stock in a transaction on Friday, October 24th. The stock was sold at an average price of $33.20, for a total value of $803,871.60. Following the sale, the director directly owned 59,400 shares in the company, valued at $1,972,080. This trade represents a 28.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 328,035 shares of company stock valued at $11,376,479 in the last ninety days. 9.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Several institutional investors and hedge funds have recently bought and sold shares of APLD. Atlantic Union Bankshares Corp acquired a new position in shares of Applied Digital in the second quarter worth about $25,000. Larson Financial Group LLC boosted its stake in Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after purchasing an additional 1,129 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in Applied Digital during the 2nd quarter worth approximately $26,000. Dagco Inc. acquired a new stake in Applied Digital during the 3rd quarter valued at $27,000. Finally, Evolution Wealth Management Inc. lifted its holdings in shares of Applied Digital by 101.8% in the third quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company’s stock valued at $37,000 after purchasing an additional 807 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

About Applied Digital

(Get Free Report)

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.

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