Applied Digital (NASDAQ:APLD) Trading Down 4.8% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) dropped 4.8% during trading on Wednesday . The stock traded as low as $35.07 and last traded at $35.52. 18,550,259 shares changed hands during trading, a decline of 26% from the average session volume of 25,207,504 shares. The stock had previously closed at $37.30.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on APLD. Compass Point reiterated a “buy” rating and issued a $70.00 price objective on shares of Applied Digital in a research note on Friday, May 22nd. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research note on Tuesday, June 9th. Roth Mkm reissued a “buy” rating and issued a $65.00 price objective on shares of Applied Digital in a report on Thursday, April 23rd. Citizens Jmp upped their target price on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a report on Friday, April 24th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, Applied Digital currently has an average rating of “Moderate Buy” and an average price target of $70.56.

Applied Digital Stock Performance

The firm’s 50 day moving average is $41.81 and its 200-day moving average is $34.08. The stock has a market capitalization of $9.45 billion, a price-to-earnings ratio of -44.68 and a beta of 5.67. 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 released its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. During the same quarter in the prior year, the business posted ($0.08) EPS. The firm’s quarterly revenue was up 139.3% compared to the same quarter last year. Analysts forecast that Applied Digital Corporation will post -0.7 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director owned 184,859 shares of the company’s stock, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 12,500 shares of the firm’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Noble Wealth Management PBC acquired a new position in Applied Digital during the fourth quarter worth $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital during the fourth quarter worth about $25,000. Activest Wealth Management purchased a new stake in shares of Applied Digital during the fourth quarter worth about $25,000. Ameriflex Group Inc. acquired a new position in shares of Applied Digital during the 4th quarter worth about $25,000. Finally, McMillan Office Inc. acquired a new position in shares of Applied Digital during the 4th quarter worth about $25,000. Hedge funds and other institutional investors 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.