Applied Digital (NASDAQ:APLD) Trading Down 7.1% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) was down 7.1% during trading on Wednesday . The stock traded as low as $38.63 and last traded at $38.92. Approximately 20,855,203 shares were traded during trading, a decline of 19% from the average daily volume of 25,797,840 shares. The stock had previously closed at $41.91.

Wall Street Analyst Weigh In

Several research analysts have recently commented on APLD shares. Citizens Jmp lifted their price target on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a report on Thursday, May 21st. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Compass Point reiterated a “buy” rating and set a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. B. Riley Financial reiterated a “buy” rating and set a $66.00 price target (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Finally, Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a report on Monday. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $67.67.

Applied Digital Stock Performance

The stock has a market capitalization of $12.20 billion, a PE ratio of -57.70 and a beta of 5.69. The firm’s fifty day moving average is $37.57 and its 200-day moving average is $32.65. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The company had revenue of $108.55 million during the quarter, compared to analysts’ expectations of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm’s quarterly revenue was up 139.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.08) earnings per share. As a group, research analysts anticipate that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insider Activity

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares of the company’s stock, valued at $6,466,367.82. The trade was a 5.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, the director directly owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors have recently bought and sold shares of APLD. Teachers Retirement System of The State of Kentucky acquired a new position in shares of Applied Digital during the third quarter worth about $994,000. MRA Advisory Group acquired a new position in shares of Applied Digital during the third quarter worth about $978,000. Vanguard Group Inc. grew its position in shares of Applied Digital by 23.2% during the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock worth $406,547,000 after buying an additional 3,339,062 shares in the last quarter. Cannon Capital Management Inc. acquired a new position in shares of Applied Digital during the fourth quarter worth about $3,635,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Applied Digital during the fourth quarter worth about $2,674,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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.