Applied Digital (NASDAQ:APLD) Trading Down 2.5% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 2.5% during mid-day trading on Thursday . The company traded as low as $39.80 and last traded at $40.95. Approximately 12,794,840 shares changed hands during trading, a decline of 49% from the average session volume of 25,175,760 shares. The stock had previously closed at $41.98.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Citizens Jmp raised their price target on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research note on Thursday, May 21st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Lucid Cap Mkts raised Applied Digital to a “strong-buy” rating in a report on Wednesday, May 27th. Roth Mkm restated a “buy” rating and issued a $65.00 target price on shares of Applied Digital in a research report on Thursday, April 23rd. Finally, Wall Street Zen downgraded Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $70.56.

Applied Digital Stock Performance

The stock has a market cap of $11.70 billion, a price-to-earnings ratio of -55.34 and a beta of 5.69. The company’s 50 day simple moving average is $41.08 and its 200 day simple moving average is $33.81. 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 issued its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). The company had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company’s revenue was up 139.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.08) earnings per share. On average, equities research analysts anticipate that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the transaction, the director directly 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 position. The sale 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 business’s 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 sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. This represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Noble Wealth Management PBC acquired a new position in Applied Digital during the fourth quarter worth about $25,000. Albion Financial Group UT acquired a new stake in Applied Digital in the 4th quarter valued at about $25,000. Activest Wealth Management acquired a new stake in Applied Digital in the 4th quarter valued at about $25,000. Ameriflex Group Inc. bought a new position in shares of Applied Digital during the 4th quarter valued at about $25,000. Finally, McMillan Office Inc. bought a new position in shares of Applied Digital during the 4th quarter valued at about $25,000. 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.