Applied Digital (NASDAQ:APLD) Shares Down 6.4% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s share price was down 6.4% during mid-day trading on Tuesday . The stock traded as low as $25.28 and last traded at $26.15. Approximately 13,608,040 shares traded hands during trading, a decline of 58% from the average daily volume of 32,318,387 shares. The stock had previously closed at $27.93.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on APLD. Wall Street Zen raised Applied Digital from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Needham & Company LLC reissued a “buy” rating and issued a $41.00 target price on shares of Applied Digital in a report on Thursday, January 8th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Wednesday, January 28th. Freedom Capital raised shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 6th. Finally, Arete Research initiated coverage on shares of Applied Digital in a research note on Wednesday, January 7th. They issued a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $37.00.

Applied Digital Price Performance

The stock has a fifty day moving average of $32.51 and a two-hundred day moving average of $27.72. The stock has a market cap of $7.31 billion, a price-to-earnings ratio of -48.43 and a beta of 7.20. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79.

Insider Activity at Applied Digital

In related news, CEO Wes Cummins sold 165,000 shares of the business’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the sale, the chief executive officer owned 4,176,329 shares of the company’s stock, valued at approximately $152,101,902.18. The trade was a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Chuck Hastings sold 45,987 shares of the stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the completion of the transaction, the director directly owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. This trade represents a 10.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 244,593 shares of company stock worth $9,003,278 over the last three months. 9.50% of the stock is currently owned by company insiders.

Institutional Trading of Applied Digital

Several large investors have recently bought and sold shares of the company. NWF Advisory Services Inc. raised its stake in shares of Applied Digital by 38.1% during the 4th quarter. NWF Advisory Services Inc. now owns 17,160 shares of the company’s stock worth $421,000 after buying an additional 4,730 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Applied Digital during the fourth quarter worth about $4,328,000. White Knight Strategic Wealth Advisors LLC lifted its holdings in shares of Applied Digital by 7.6% in the fourth quarter. White Knight Strategic Wealth Advisors LLC now owns 29,846 shares of the company’s stock valued at $732,000 after purchasing an additional 2,120 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new stake in shares of Applied Digital in the fourth quarter valued at approximately $27,000. Finally, T. Rowe Price Investment Management Inc. grew its position in shares of Applied Digital by 104.8% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 4,209,702 shares of the company’s stock valued at $103,222,000 after purchasing an additional 2,154,213 shares during the last quarter. Institutional investors and hedge funds 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.