Applied Digital (NASDAQ:APLD) Stock Price Down 5.2% on Insider Selling

Shares of Applied Digital Corporation (NASDAQ:APLD) fell 5.2% on Monday following insider selling activity. The stock traded as low as $32.52 and last traded at $32.87. 26,845,208 shares changed hands during trading, a decline of 26% from the average session volume of 36,356,453 shares. The stock had previously closed at $34.66.

Specifically, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total value of $1,502,685.70. Following the transaction, the director owned 69,256 shares in the company, valued at $2,444,736.80. This trade represents a 38.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Chuck Hastings sold 25,000 shares of the firm’s stock in a transaction on Friday, October 31st. The shares were sold at an average price of $34.27, for a total transaction of $856,750.00. Following the completion of the transaction, the director directly owned 426,612 shares in the company, valued at approximately $14,619,993.24. This represents a 5.54% decrease in their position. The SEC filing for this sale provides additional information. In other news, Director Chuck Hastings sold 50,000 shares of the firm’s stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.69, for a total value of $1,784,500.00. Following the transaction, the director owned 451,612 shares of the company’s stock, valued at approximately $16,118,032.28. This trade represents a 9.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. B. Riley reissued a “buy” rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Craig Hallum raised 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. Northland Securities raised their target price on shares of Applied Digital to $40.00 and gave the company an “outperform” rating in a research note on Friday, October 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Finally, Compass Point assumed coverage on shares of Applied Digital in a research note on Monday, September 15th. They issued a “buy” rating on the stock. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $26.20.

Applied Digital Price Performance

The stock has a market cap of $9.19 billion, a PE ratio of -29.09 and a beta of 6.77. 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 company’s 50 day moving average is $25.10 and its 200-day moving average is $15.21.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $38.01 million for the quarter, compared to the consensus estimate of $52.25 million. During the same quarter in the previous year, the firm posted ($0.15) EPS. The firm’s quarterly revenue was up 84.3% on a year-over-year basis. As a group, sell-side analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Teacher Retirement System of Texas bought a new stake in shares of Applied Digital in the 1st quarter worth about $139,000. Scientech Research LLC bought a new stake in shares of Applied Digital in the 1st quarter worth about $806,000. Chelsea Counsel Co. bought a new stake in shares of Applied Digital in the 2nd quarter worth about $582,000. Lake Hills Wealth Management LLC bought a new stake in shares of Applied Digital in the 2nd quarter worth about $184,000. Finally, Hunter Associates Investment Management LLC increased its position in shares of Applied Digital by 15.9% in the 1st quarter. Hunter Associates Investment Management LLC now owns 535,921 shares of the company’s stock worth $3,019,000 after purchasing an additional 73,718 shares during the last quarter. Institutional investors 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.