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

Applied Digital Corporation (NASDAQ:APLD) 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.

Wall Street Analyst Weigh In

Several brokerages have commented on APLD. Northland Securities lifted their price target on Applied Digital to $40.00 and gave the stock an “outperform” rating in a research report on Friday, October 10th. B. Riley reaffirmed a “buy” rating on shares of Applied Digital in a research report on Wednesday, October 22nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. HC Wainwright raised their price target 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. Finally, Craig Hallum increased their target price on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Digital has an average rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Down 1.4%

The stock has a market capitalization of $7.18 billion, a P/E ratio of -22.76 and a beta of 6.94. 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 is $28.79 and its 200-day moving average is $20.43.

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

Insiders Place Their Bets

In related news, Director Rachel H. Lee sold 24,213 shares of the company’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $33.20, for a total transaction of $803,871.60. Following the transaction, the director owned 59,400 shares in the company, valued at $1,972,080. This represents a 28.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ella G. Benson sold 42,569 shares of the firm’s stock in a transaction dated Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total transaction of $1,502,685.70. Following the completion of the sale, the director owned 69,256 shares of the company’s stock, valued at $2,444,736.80. The trade was a 38.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 328,035 shares of company stock valued at $11,376,479 over the last three months. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of APLD. Scientech Research LLC acquired a new stake in Applied Digital during the 1st quarter worth $806,000. Voya Investment Management LLC increased its holdings in shares of Applied Digital by 403.4% in the third quarter. Voya Investment Management LLC now owns 1,464,909 shares of the company’s stock worth $33,605,000 after acquiring an additional 1,173,929 shares in the last quarter. Chelsea Counsel Co. bought a new stake in shares of Applied Digital in the second quarter worth about $582,000. Lake Hills Wealth Management LLC acquired a new stake in shares of Applied Digital during the second quarter worth about $184,000. Finally, KLP Kapitalforvaltning AS lifted its holdings in shares of Applied Digital by 27.7% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 41,500 shares of the company’s stock valued at $418,000 after purchasing an additional 9,000 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

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.