Applied Digital (NASDAQ:APLD) Trading Down 1.2% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 1.2% during mid-day trading on Tuesday . The stock traded as low as $37.18 and last traded at $37.30. 16,994,098 shares were traded during trading, a decline of 33% from the average daily volume of 25,251,178 shares. The stock had previously closed at $37.77.

Analysts Set New Price Targets

Several research firms have weighed in on APLD. Compass Point restated a “buy” rating and issued a $70.00 price target on shares of Applied Digital in a research note on Friday, May 22nd. Northland Securities set a $82.00 target price on shares of Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Needham & Company LLC upped their target price on shares of Applied Digital from $66.00 to $83.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Friday, April 24th. Finally, Wall Street Zen downgraded shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Applied Digital currently has an average rating of “Moderate Buy” and a consensus price target of $70.56.

Applied Digital Stock Performance

The company has a market capitalization of $9.45 billion, a P/E ratio of -44.68 and a beta of 5.67. The business has a 50 day moving average of $41.78 and a 200 day moving average of $34.04. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65.

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

Insiders Place Their Bets

In other news, Director Richard N. Nottenburg sold 12,500 shares of the business’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Monday, April 27th. The shares were 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. The trade was a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Large investors have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. lifted its stake in shares of Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock valued at $93,000 after purchasing an additional 300 shares during the last quarter. Concurrent Investment Advisors LLC lifted its position in Applied Digital by 1.5% in the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after buying an additional 318 shares during the last quarter. Brookstone Capital Management boosted its stake in Applied Digital by 3.6% during the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock worth $227,000 after buying an additional 321 shares during the period. Independent Advisor Alliance boosted its stake in Applied Digital by 4.6% during the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock worth $226,000 after buying an additional 407 shares during the period. Finally, PNC Financial Services Group Inc. increased its position in Applied Digital by 7.4% during the third quarter. PNC Financial Services Group Inc. now owns 5,951 shares of the company’s stock valued at $137,000 after acquiring an additional 408 shares during the last quarter. 65.67% of the stock is owned by 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.