Applied Digital (NASDAQ:APLD) Shares Down 3.9% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD) traded down 3.9% on Tuesday . The stock traded as low as $36.33 and last traded at $36.71. 30,985,845 shares traded hands during trading, a decline of 39% from the average session volume of 50,556,488 shares. The stock had previously closed at $38.21.

Analyst Upgrades and Downgrades

APLD has been the topic of several research reports. Compass Point started coverage on shares of Applied Digital in a report on Monday, September 15th. They set a “buy” rating on the stock. Northland Securities reiterated an “outperform” rating and issued a $40.00 price target on shares of Applied Digital in a report on Tuesday, December 30th. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 6th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Tuesday, December 30th. Finally, Arete assumed coverage on Applied Digital in a research report on Wednesday, January 7th. They set a “buy” rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $33.27.

Applied Digital Price Performance

The stock’s 50-day moving average price is $27.44 and its 200 day moving average price is $22.10. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The firm has a market capitalization of $10.26 billion, a price-to-earnings ratio of -67.98 and a beta of 6.89.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The business had revenue of $126.59 million for the quarter, compared to analysts’ expectations of $82.22 million. Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The firm’s revenue was up 250.1% on a year-over-year basis. During the same period in the prior year, the company posted ($0.06) EPS. Equities research analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Richard N. Nottenburg sold 9,375 shares of the stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $35.91, for a total value of $336,656.25. Following the completion of the sale, the director owned 249,237 shares of the company’s stock, valued at approximately $8,950,100.67. This trade represents a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $35.30, for a total value of $1,502,685.70. Following the transaction, the director owned 69,256 shares in the company, valued at approximately $2,444,736.80. This represents a 38.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 328,035 shares of company stock valued at $11,376,479. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors have recently bought and sold shares of APLD. Noble Wealth Management PBC acquired a new stake in shares of Applied Digital during the 4th quarter worth approximately $25,000. Larson Financial Group LLC lifted its holdings in Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after acquiring an additional 1,129 shares during the last quarter. Dagco Inc. acquired a new position in Applied Digital in the third quarter valued at approximately $27,000. GAMMA Investing LLC grew its position in Applied Digital by 87.5% in the fourth quarter. GAMMA Investing LLC now owns 1,376 shares of the company’s stock worth $34,000 after acquiring an additional 642 shares during the period. Finally, Evolution Wealth Management Inc. grew its position in Applied Digital by 101.8% in the third quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company’s stock worth $37,000 after acquiring an additional 807 shares during the period. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.