Applied Digital (NASDAQ:APLD) Shares Down 10.5% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD)’s stock price was down 10.5% on Friday . The stock traded as low as $25.07 and last traded at $25.14. Approximately 20,315,569 shares were traded during trading, a decline of 35% from the average daily volume of 31,330,688 shares. The stock had previously closed at $28.09.

Analyst Ratings Changes

APLD has been the subject of several recent research reports. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a report on Tuesday, January 6th. Citigroup reiterated an “outperform” rating on shares of Applied Digital in a research note on Wednesday, January 28th. Texas Capital upgraded Applied Digital to a “strong-buy” rating in a report on Tuesday, January 20th. Arete Research initiated coverage on Applied Digital in a report on Wednesday, January 7th. They issued a “buy” rating for the company. Finally, Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Two 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. According to data from MarketBeat, Applied Digital currently has a consensus rating of “Buy” and an average target price of $37.00.

Applied Digital Trading Down 10.5%

The business has a 50 day simple moving average of $32.61 and a two-hundred day simple moving average of $27.81. The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79. The stock has a market cap of $7.03 billion, a price-to-earnings ratio of -46.54 and a beta of 7.20.

Insider Activity at Applied Digital

In related news, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction on 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 sale, the chief executive officer directly owned 4,176,329 shares of the company’s stock, valued at $152,101,902.18. This represents a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total transaction of $425,400.00. Following the transaction, the director directly owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. This represents a 4.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 244,593 shares of company stock worth $9,003,278 in the last ninety days. 9.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of APLD. Vanguard Group Inc. lifted its stake in Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after buying an additional 6,445,908 shares during the last quarter. Value Aligned Research Advisors LLC acquired a new stake in shares of Applied Digital in the 4th quarter worth about $138,380,000. Situational Awareness LP lifted its position in Applied Digital by 87.0% in the 4th 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 during the last quarter. BNP Paribas Financial Markets lifted its position in Applied Digital by 24,356.8% in the 2nd 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 during the last quarter. Finally, Marex Group plc boosted its stake in Applied Digital by 38,484.6% during the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock valued at $95,745,000 after purchasing an additional 3,894,639 shares during the period. 65.67% of the stock is owned by 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.