Applied Digital (NASDAQ:APLD) Stock Price Down 6.4% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price traded down 6.4% during mid-day trading on Tuesday . The company traded as low as $35.68 and last traded at $36.62. 15,178,626 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 26,170,688 shares. The stock had previously closed at $39.14.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. Texas Capital raised Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Citizens Jmp reaffirmed a “market outperform” rating and set a $40.00 price target on shares of Applied Digital in a research report on Thursday, April 9th. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Finally, Needham & Company LLC boosted their price target on Applied Digital to $51.00 and gave the stock a “buy” rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $44.67.

Applied Digital Price Performance

The stock has a market cap of $10.46 billion, a price-to-earnings ratio of -49.49 and a beta of 5.69. The company has a 50-day simple moving average of $31.15 and a two-hundred day simple moving average of $30.62. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The company had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The firm’s revenue for the quarter was up 139.3% compared to the same quarter last year. During the same period last year, the firm earned ($0.08) EPS. As a group, equities research analysts forecast that Applied Digital Corporation will post -0.61 EPS for the current year.

Insider Activity at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares in the company, valued at approximately $6,466,367.82. The trade was a 5.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares of the company’s stock, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 35,000 shares of company stock valued at $1,182,175 over the last quarter. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in APLD. Vanguard Group Inc. boosted 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 acquiring an additional 6,445,908 shares during the period. Value Aligned Research Advisors LLC bought a new position in shares of Applied Digital during the 4th quarter worth approximately $138,380,000. Situational Awareness LP boosted its stake in shares of Applied Digital by 87.0% during the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock worth $278,034,000 after acquiring an additional 5,274,905 shares during the period. BNP Paribas Financial Markets boosted its stake in shares of Applied Digital by 24,356.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after acquiring an additional 5,198,223 shares during the period. Finally, Marex Group plc boosted its stake in shares of Applied Digital by 38,484.6% during the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock worth $95,745,000 after acquiring an additional 3,894,639 shares during the period. 65.67% of the stock is currently 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.