Applied Digital (NASDAQ:APLD) Shares Down 2.5% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 2.5% during mid-day trading on Thursday . The stock traded as low as $39.80 and last traded at $40.95. 12,794,840 shares traded hands during trading, a decline of 49% from the average daily volume of 25,175,760 shares. The stock had previously closed at $41.98.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Monday, June 8th. Lake Street Capital boosted their price target on shares of Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Friday, April 24th. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Finally, Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $70.56.

Applied Digital Trading Down 4.2%

The company has a market capitalization of $11.21 billion, a PE ratio of -53.00 and a beta of 5.69. The company has a fifty day simple moving average of $41.44 and a 200-day simple moving average of $33.92. 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 posted its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million. During the same quarter in the prior year, the firm earned ($0.08) EPS. The firm’s revenue was up 139.3% on a year-over-year basis. Analysts predict that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Transactions at Applied Digital

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

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Parallel Advisors LLC increased its stake in Applied Digital by 126.1% during the first quarter. Parallel Advisors LLC now owns 2,614 shares of the company’s stock worth $62,000 after acquiring an additional 1,458 shares during the last quarter. Vestor Capital LLC purchased a new position in shares of Applied Digital during the 1st quarter worth $98,000. Western Wealth Management LLC acquired a new stake in shares of Applied Digital during the 1st quarter worth about $87,000. Janus Henderson Group PLC raised its holdings in Applied Digital by 318.5% in the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock valued at $18,638,000 after buying an additional 597,548 shares during the period. Finally, Amundi lifted its position in Applied Digital by 61.8% in the first quarter. Amundi now owns 31,327 shares of the company’s stock valued at $744,000 after buying an additional 11,968 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.