Applied Digital (NASDAQ:APLD) Trading Down 4% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s stock price dropped 4% during mid-day trading on Monday . The stock traded as low as $35.72 and last traded at $36.18. Approximately 47,817,189 shares changed hands during mid-day trading, an increase of 10% from the average daily volume of 43,527,031 shares. The stock had previously closed at $37.69.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a report on Tuesday, January 6th. Lake Street Capital reaffirmed a “buy” rating and issued a $45.00 price objective on shares of Applied Digital in a research note on Tuesday, December 30th. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research report on Tuesday, December 30th. Texas Capital raised shares of Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 20th. Finally, Arete Research started coverage on Applied Digital in a report on Wednesday, January 7th. They set a “buy” rating for the company. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Applied Digital currently has an average rating of “Buy” and an average price target of $33.27.

Applied Digital Stock Performance

The company’s 50-day moving average is $29.03 and its two-hundred day moving average is $23.95. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The company has a market cap of $10.12 billion, a P/E ratio of -67.00 and a beta of 6.89.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, January 7th. The company reported ($0.11) earnings per share 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 analysts’ expectations of $82.22 million. During the same quarter in the previous year, the firm earned ($0.06) earnings per share. The firm’s revenue was up 250.1% compared to the same quarter last year. Equities analysts predict that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity

In other news, CEO Wes Cummins sold 165,000 shares of the stock in a transaction on Friday, January 16th. The stock was sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the completion of the transaction, the chief executive officer owned 4,176,329 shares in the company, valued at approximately $152,101,902.18. This represents a 3.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 12,000 shares of the business’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $35.45, for a total value of $425,400.00. Following the completion of the sale, the director owned 233,378 shares in the company, valued at $8,273,250.10. This represents a 4.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 368,053 shares of company stock worth $13,251,886. 9.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Institutional investors have recently modified their holdings of the business. Noble Wealth Management PBC purchased a new position in Applied Digital in the 4th quarter valued at approximately $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital during the fourth quarter worth $25,000. Larson Financial Group LLC boosted its holdings in shares of Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after acquiring an additional 1,129 shares during the period. Dagco Inc. purchased a new position in shares of Applied Digital in the third quarter valued at $27,000. Finally, GAMMA Investing LLC grew its position in shares of Applied Digital by 87.5% in the fourth quarter. GAMMA Investing LLC now owns 1,376 shares of the company’s stock valued at $34,000 after purchasing an additional 642 shares in the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.