Applied Digital (NASDAQ:APLD) Trading Down 2.4% After Insider Selling

Applied Digital Corporation (NASDAQ:APLD) shares fell 2.4% on Thursday following insider selling activity. The stock traded as low as $35.05 and last traded at $35.22. 25,785,727 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 46,206,996 shares. The stock had previously closed at $36.10.

Specifically, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $38.54, for a total value of $385,400.00. Following the sale, the director directly owned 200,859 shares of the company’s stock, valued at approximately $7,741,105.86. This represents a 4.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on APLD shares. Citigroup restated an “outperform” rating on shares of Applied Digital in a research note on Tuesday, December 30th. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. B. Riley raised their price objective on shares of Applied Digital to $53.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. Craig Hallum lifted their target price on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a report on Thursday, October 23rd. Finally, Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Applied Digital presently has a consensus rating of “Buy” and a consensus target price of $33.27.

Applied Digital Stock Performance

The firm has a market capitalization of $9.85 billion, a price-to-earnings ratio of -65.22 and a beta of 6.89. The firm has a 50 day moving average price of $27.61 and a 200-day moving average price of $22.39. The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02). Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The company had revenue of $126.59 million during the quarter, compared to analyst estimates of $82.22 million. During the same period in the prior year, the business earned ($0.06) EPS. Applied Digital’s revenue for the quarter was up 250.1% on a year-over-year basis. As a group, sell-side analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC acquired a new stake in shares of Applied Digital in the 4th quarter valued at $388,000. Brookstone Capital Management raised its stake in Applied Digital by 3.6% in the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock valued at $227,000 after buying an additional 321 shares in the last quarter. Quad Cities Investment Group LLC purchased a new stake in Applied Digital during the 4th quarter worth about $492,000. CoreCap Advisors LLC boosted its position in shares of Applied Digital by 33.9% during the 4th quarter. CoreCap Advisors LLC now owns 2,416 shares of the company’s stock worth $59,000 after acquiring an additional 612 shares in the last quarter. Finally, Stonehage Fleming Financial Services Holdings Ltd purchased a new position in shares of Applied Digital in the 4th quarter valued at about $153,000. 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.