Applied Digital (NASDAQ:APLD) Shares Gap Down on Insider Selling

Applied Digital Co. (NASDAQ:APLD)’s share price gapped down before the market opened on Monday after an insider sold shares in the company. 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.

Specifically, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction dated Thursday, October 17th. The shares were sold at an average price of $8.01, for a total transaction of $80,100.00. Following the transaction, the director now directly owns 208,506 shares in the company, valued at approximately $1,670,133.06. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 80,000 shares of Applied Digital stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $7.37, for a total transaction of $589,600.00. Following the sale, the director now owns 433,686 shares of the company’s stock, valued at approximately $3,196,265.82. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on APLD. B. Riley raised their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Roth Mkm restated a “buy” rating and issued a $10.00 price target on shares of Applied Digital in a research report on Thursday, October 10th. HC Wainwright boosted their price objective on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Lake Street Capital increased their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Finally, Needham & Company LLC restated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Thursday, October 17th. Six research analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $10.50.

Applied Digital Trading Up 4.8 %

The firm has a market cap of $1.25 billion, a price-to-earnings ratio of -11.56 and a beta of 4.56. The business has a 50 day moving average of $6.12 and a 200 day moving average of $5.01. The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 1.14.

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

Institutional Trading of Applied Digital

Hedge funds have recently bought and sold shares of the company. Principal Financial Group Inc. acquired a new position in Applied Digital in the 1st quarter valued at $50,000. Headlands Technologies LLC increased its stake in Applied Digital by 381.8% in the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after purchasing an additional 6,933 shares during the last quarter. ARS Investment Partners LLC purchased a new position in Applied Digital during the second quarter worth about $60,000. Price T Rowe Associates Inc. MD lifted its position in Applied Digital by 15.3% during the first quarter. Price T Rowe Associates Inc. MD now owns 24,018 shares of the company’s stock worth $103,000 after buying an additional 3,182 shares during the period. Finally, Crumly & Associates Inc. acquired a new stake in Applied Digital in the 2nd quarter worth about $110,000. 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.