Applied Digital (NASDAQ:APLD) Trading Down 2.7% – Should You Sell?

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 2.7% on Wednesday . The company traded as low as $38.85 and last traded at $40.22. 30,123,107 shares traded hands during trading, a decline of 30% from the average session volume of 42,912,059 shares. The stock had previously closed at $41.35.

Analyst Upgrades and Downgrades

Several research analysts have commented on APLD shares. Citigroup reiterated an “outperform” rating on shares of Applied Digital in a report on Wednesday. B. Riley increased their price target on shares of Applied Digital to $53.00 and gave the company a “buy” rating in a research note on Friday, January 9th. Wall Street Zen upgraded shares of Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Lake Street Capital reissued a “buy” rating and issued a $45.00 price target on shares of Applied Digital in a research report on Tuesday, December 30th. Finally, Freedom Capital raised Applied Digital to a “strong-buy” rating in a report on Tuesday, January 6th. Three investment 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 stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $34.73.

Applied Digital Stock Down 2.7%

The business has a 50-day simple moving average of $29.40 and a two-hundred day simple moving average of $24.18. The company has a market capitalization of $11.24 billion, a price-to-earnings ratio of -74.48 and a beta of 6.89. The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, January 7th. The company reported ($0.11) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.02). Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The company had revenue of $126.59 million for the quarter, compared to analysts’ expectations of $82.22 million. During the same quarter last year, the company earned ($0.06) EPS. Applied Digital’s revenue for the quarter was up 250.1% compared to the same quarter last year. As a group, equities analysts predict that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity

In other Applied Digital news, Director Chuck Hastings sold 25,000 shares of the business’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $34.27, for a total transaction of $856,750.00. Following the transaction, the director owned 426,612 shares in the company, valued at approximately $14,619,993.24. The trade was a 5.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the director directly owned 200,859 shares of the company’s stock, valued at $7,741,105.86. This represents a 4.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 237,981 shares of company stock worth $8,596,966 in the last ninety days. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the business. 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 in the last quarter. Vanguard Group Inc. grew its holdings in Applied Digital by 23.2% in the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock valued at $406,547,000 after purchasing an additional 3,339,062 shares during the last quarter. Two Sigma Investments LP acquired a new position in shares of Applied Digital during the 3rd quarter worth $69,535,000. Situational Awareness LP grew its stake in Applied Digital by 63.3% in the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock valued at $66,379,000 after acquiring an additional 2,556,200 shares during the last quarter. Finally, HRT Financial LP purchased a new position in Applied Digital during the 2nd quarter valued at about $14,759,000. 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.