Applied Digital (NASDAQ:APLD) Trading Down 3% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s stock price fell 3% on Friday . The stock traded as low as $24.87 and last traded at $25.8860. 17,332,604 shares changed hands during trading, a decline of 39% from the average session volume of 28,339,674 shares. The stock had previously closed at $26.70.

Analysts Set New Price Targets

Several research analysts recently commented on APLD shares. Needham & Company LLC reissued a “buy” rating and issued a $41.00 price target on shares of Applied Digital in a report on Thursday, January 8th. Freedom Capital raised shares of Applied Digital to a “strong-buy” rating in a report on Tuesday, January 6th. Arete Research assumed coverage on shares of Applied Digital in a report on Wednesday, January 7th. They set a “buy” rating for the company. Roth Mkm reissued a “buy” rating on shares of Applied Digital in a report on Tuesday, February 17th. Finally, Texas Capital raised shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 20th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $37.00.

Applied Digital Price Performance

The stock has a 50-day moving average of $32.60 and a two-hundred day moving average of $28.58. The firm has a market cap of $7.24 billion, a price-to-earnings ratio of -47.94 and a beta of 7.20. The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79.

Insider Activity

In other news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $38.54, for a total transaction of $385,400.00. Following the transaction, the director directly owned 200,859 shares in the company, valued at $7,741,105.86. The trade was a 4.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 value 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. This represents a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 244,593 shares of company stock valued at $9,003,278. 9.50% of the stock is currently owned by company insiders.

Institutional Trading of Applied Digital

A number of institutional investors have recently added to or reduced their stakes in the business. Teachers Retirement System of The State of Kentucky acquired a new stake in shares of Applied Digital in the third quarter worth about $994,000. Voya Investment Management LLC grew its stake in shares of Applied Digital by 403.4% in the third quarter. Voya Investment Management LLC now owns 1,464,909 shares of the company’s stock worth $33,605,000 after acquiring an additional 1,173,929 shares during the last quarter. Federated Hermes Inc. acquired a new position in shares of Applied Digital during the third quarter valued at about $3,204,000. AlphaQuest LLC acquired a new position in Applied Digital in the 3rd quarter valued at approximately $1,369,000. Finally, MRA Advisory Group bought a new position in Applied Digital in the third quarter worth $978,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.