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

Applied Digital Corporation (NASDAQ:APLD)’s share price was down 4.8% during mid-day trading on Friday . The company traded as low as $26.08 and last traded at $27.27. Approximately 18,246,886 shares changed hands during trading, a decline of 45% from the average daily volume of 33,210,516 shares. The stock had previously closed at $28.65.

Analysts Set New Price Targets

Several research firms recently issued reports on APLD. Freedom Capital upgraded shares of Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. Northland Securities set a $56.00 target price on Applied Digital in a report on Wednesday, January 28th. Citigroup reissued an “outperform” rating on shares of Applied Digital in a report on Wednesday, January 28th. Needham & Company LLC reaffirmed a “buy” rating and issued a $41.00 price objective on shares of Applied Digital in a research note on Thursday, January 8th. Finally, Lake Street Capital reissued a “buy” rating and set a $45.00 target price on shares of Applied Digital in a research note on Tuesday, December 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Applied Digital has an average rating of “Buy” and a consensus price target of $37.00.

Applied Digital Price Performance

The business has a 50-day moving average of $32.51 and a two-hundred day moving average of $27.36. The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79. The firm has a market cap of $7.62 billion, a P/E ratio of -50.50 and a beta of 7.25.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction that occurred on 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 transaction, the director owned 233,378 shares in the company, valued at $8,273,250.10. This trade represents a 4.89% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Wes Cummins sold 165,000 shares of Applied Digital stock in a transaction that occurred 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 sale, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 244,593 shares of company stock worth $9,003,278. 9.50% of the stock is owned by corporate insiders.

Institutional Trading of Applied Digital

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in shares of Applied Digital by 36.4% during the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after acquiring an additional 6,445,908 shares during the last quarter. Value Aligned Research Advisors LLC bought a new position in Applied Digital during the 4th quarter worth approximately $138,380,000. Situational Awareness LP lifted its position in shares of Applied Digital by 87.0% in the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock worth $278,034,000 after purchasing an additional 5,274,905 shares during the period. BNP Paribas Financial Markets boosted its stake in shares of Applied Digital by 24,356.8% in 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 increased its position in shares of Applied Digital by 38,484.6% during the fourth quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock worth $95,745,000 after buying an additional 3,894,639 shares during the period. 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.