Applied Digital (NASDAQ:APLD) Shares Down 1.7% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s stock price fell 1.7% during trading on Tuesday . The company traded as low as $26.08 and last traded at $26.79. 12,684,242 shares changed hands during trading, a decline of 54% from the average session volume of 27,796,479 shares. The stock had previously closed at $27.26.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Citigroup restated an “outperform” rating on shares of Applied Digital in a report on Wednesday, January 28th. Texas Capital raised Applied Digital to a “strong-buy” rating in a report on Tuesday, January 20th. Needham & Company LLC reissued a “buy” rating and issued a $41.00 price target on shares of Applied Digital in a research note on Thursday, January 8th. Wall Street Zen upgraded Applied Digital from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Finally, Arete Research began coverage on shares of Applied Digital in a research note on Wednesday, January 7th. They set a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Digital currently has an average rating of “Buy” and a consensus price target of $37.00.

Applied Digital Trading Down 1.7%

The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The firm has a market cap of $7.49 billion, a price-to-earnings ratio of -49.61 and a beta of 7.20. The company has a 50-day moving average price of $32.14 and a 200 day moving average price of $28.93.

Insiders Place Their Bets

In other Applied Digital news, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $35.45, for a total transaction of $425,400.00. Following the completion of the sale, the director directly owned 233,378 shares in the company, valued at approximately $8,273,250.10. This trade represents a 4.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Wes Cummins sold 165,000 shares of Applied Digital stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the transaction, the chief executive officer directly owned 4,176,329 shares in the company, valued at approximately $152,101,902.18. This trade represents a 3.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 244,593 shares of company stock valued at $9,003,278 in the last 90 days. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after acquiring an additional 6,445,908 shares during the last quarter. Value Aligned Research Advisors LLC acquired a new stake in Applied Digital during the fourth quarter valued at $138,380,000. Situational Awareness LP grew its stake in Applied Digital by 87.0% in the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock valued at $278,034,000 after purchasing an additional 5,274,905 shares in the last quarter. BNP Paribas Financial Markets grew its stake in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, Marex Group plc increased its position in Applied Digital by 38,484.6% in the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock worth $95,745,000 after purchasing an additional 3,894,639 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.