Applied Digital (NASDAQ:APLD) Shares Down 1.2% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) was down 1.2% during mid-day trading on Monday . The stock traded as low as $26.06 and last traded at $26.89. Approximately 11,065,985 shares traded hands during trading, a decline of 53% from the average session volume of 23,708,051 shares. The stock had previously closed at $27.21.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Wall Street Zen upgraded shares of Applied Digital from a “strong sell” rating to a “sell” rating in a report on Saturday. Zacks Research upgraded shares of Applied Digital from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Compass Point restated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Finally, B. Riley Financial restated a “buy” rating and issued a $75.00 target price (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $68.15.

Applied Digital Trading Up 7.3%

The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The firm’s fifty day moving average is $32.04 and its two-hundred day moving average is $33.48. The firm has a market capitalization of $8.41 billion, a PE ratio of -32.42 and a beta of 5.75.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm had revenue of $240.35 million during the quarter, compared to analysts’ expectations of $96.85 million. During the same quarter last year, the business posted ($0.24) EPS. The company’s quarterly revenue was up 406.3% on a year-over-year basis. On average, equities analysts predict that Applied Digital Corporation will post -1.09 EPS for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the sale, the director directly owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in shares of Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after purchasing an additional 6,445,908 shares during the period. Situational Awareness LP increased its holdings in Applied Digital by 14.1% during the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock worth $574,000 after buying an additional 1,906,178 shares during the last quarter. California State Teachers Retirement System raised its position in Applied Digital by 3,718.0% in the second quarter. California State Teachers Retirement System now owns 11,121,928 shares of the company’s stock worth $414,848,000 after acquiring an additional 10,830,623 shares during the period. Equitec Proprietary Markets LLC bought a new stake in Applied Digital in the second quarter worth about $312,349,000. Finally, Geode Capital Management LLC boosted its stake in Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after acquiring an additional 304,228 shares during the last quarter. Institutional investors own 65.67% of the company’s stock.

About Applied Digital

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.