Applied Digital (NASDAQ:APLD) Downgraded by Wall Street Zen to Sell

Wall Street Zen lowered shares of Applied Digital (NASDAQ:APLD) from a hold rating to a sell rating in a research report sent to investors on Sunday morning.

Other research analysts also recently issued research reports about the stock. Northland Securities boosted their price target on shares of Applied Digital to $40.00 and gave the stock an “outperform” rating in a research report on Friday, October 10th. Needham & Company LLC boosted their price target on shares of Applied Digital from $12.00 to $16.00 and gave the stock a “buy” rating in a research report on Thursday, July 31st. HC Wainwright boosted 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. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. Finally, Craig Hallum boosted their price target on shares of Applied Digital from $12.00 to $23.00 and gave the stock a “buy” rating in a research report on Monday, August 18th. One research 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. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $22.10.

Applied Digital Trading Down 6.6%

APLD opened at $34.24 on Friday. Applied Digital has a fifty-two week low of $3.31 and a fifty-two week high of $40.20. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65. The firm has a market capitalization of $9.58 billion, a price-to-earnings ratio of -30.30 and a beta of 6.77. The company’s 50 day moving average price is $21.05 and its two-hundred day moving average price is $12.92.

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

Insider Activity at Applied Digital

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the business’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the transaction, the chief financial officer owned 201,800 shares in the company, valued at $3,079,468. The trade was a 27.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Wes Cummins sold 400,000 shares of the business’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the transaction, the chief executive officer owned 2,659,379 shares in the company, valued at $40,582,123.54. The trade was a 13.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 506,250 shares of company stock worth $7,713,675 in the last quarter. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Ethic Inc. acquired a new position in shares of Applied Digital during the 3rd quarter valued at $226,000. CWM LLC raised its holdings in Applied Digital by 99.5% during the third quarter. CWM LLC now owns 5,645 shares of the company’s stock worth $129,000 after buying an additional 2,815 shares during the last quarter. Brookstone Capital Management bought a new position in shares of Applied Digital in the third quarter valued at $205,000. Tactive Advisors LLC lifted its stake in shares of Applied Digital by 8.4% in the third quarter. Tactive Advisors LLC now owns 182,387 shares of the company’s stock valued at $4,184,000 after buying an additional 14,086 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its holdings in shares of Applied Digital by 51.8% during the third quarter. Farther Finance Advisors LLC now owns 2,306 shares of the company’s stock valued at $53,000 after buying an additional 787 shares during the last quarter. 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.