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

Applied Digital Corporation (NASDAQ:APLD) shares were down 4.8% on Friday . The stock traded as low as $46.20 and last traded at $47.2770. Approximately 21,453,529 shares changed hands during trading, a decline of 18% from the average daily volume of 26,170,455 shares. The stock had previously closed at $49.65.

Wall Street Analysts Forecast Growth

APLD has been the subject of a number of analyst reports. Zacks Research upgraded shares of Applied Digital from a “strong sell” rating to a “hold” rating in a research note on Thursday, May 7th. Needham & Company LLC lifted their target price on shares of Applied Digital from $51.00 to $66.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Lake Street Capital reiterated a “buy” rating and issued a $70.00 target price (up from $55.00) on shares of Applied Digital in a research note on Thursday, May 21st. 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 investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $59.11.

Applied Digital Trading Down 4.8%

The company has a fifty day moving average of $34.40 and a two-hundred day moving average of $31.42. 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 capitalization of $13.51 billion, a price-to-earnings ratio of -63.89 and a beta of 5.69.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. During the same quarter last year, the firm posted ($0.08) earnings per share. The firm’s revenue for the quarter was up 139.3% compared to the same quarter last year. On average, research analysts expect that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the business’s stock in a transaction that occurred 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 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction that occurred on 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 sale, the director owned 184,859 shares of the company’s stock, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 35,000 shares of company stock valued at $1,182,175. Corporate insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Noble Wealth Management PBC bought a new position in Applied Digital in the 4th quarter worth approximately $25,000. Albion Financial Group UT bought a new position in Applied Digital in the 4th quarter worth approximately $25,000. Activest Wealth Management bought a new position in Applied Digital in the 4th quarter worth approximately $25,000. Ameriflex Group Inc. bought a new position in Applied Digital in the 4th quarter worth approximately $25,000. Finally, McMillan Office Inc. bought a new position in Applied Digital in the 4th quarter worth approximately $25,000. 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.