Applied Digital (NASDAQ:APLD) Trading Down 8.3% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 8.3% during trading on Tuesday . The company traded as low as $30.24 and last traded at $30.71. Approximately 15,293,534 shares traded hands during trading, a decline of 39% from the average daily volume of 25,021,479 shares. The stock had previously closed at $33.50.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on APLD shares. B. Riley Financial restated a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Lake Street Capital boosted their price target on shares of Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Citigroup restated a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Craig Hallum lifted their price objective on shares of Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Finally, Compass Point reiterated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $70.56.

Applied Digital Price Performance

The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a market cap of $8.78 billion, a PE ratio of -41.50 and a beta of 5.67. The business has a 50-day moving average price of $41.77 and a 200 day moving average price of $34.22.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter in the prior year, the firm posted ($0.08) earnings per share. The company’s revenue was up 139.3% on a year-over-year basis. As a group, research analysts forecast that Applied Digital Corporation will post -0.7 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 35,000 shares of company stock valued at $1,182,175 over the last ninety days. Corporate insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after acquiring an additional 6,445,908 shares during the last quarter. Value Aligned Research Advisors LLC purchased a new position in shares of Applied Digital in the 4th quarter worth about $138,380,000. Situational Awareness LP increased its position in shares of Applied Digital by 87.0% during the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock valued at $278,034,000 after purchasing an additional 5,274,905 shares during the last quarter. BNP Paribas Financial Markets increased its position 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 valued at $52,561,000 after purchasing an additional 5,198,223 shares during the last quarter. Finally, Marex Group plc raised its holdings in shares of Applied Digital by 38,484.6% during the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock valued at $95,745,000 after buying an additional 3,894,639 shares in the last quarter. Institutional investors 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.