Applied Digital (NASDAQ:APLD) Trading Down 5% – Should You Sell?

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 5% on Friday . The stock traded as low as $26.93 and last traded at $27.21. Approximately 17,218,903 shares were traded during trading, a decline of 28% from the average session volume of 23,773,506 shares. The stock had previously closed at $28.65.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Zacks Research upgraded shares of Applied Digital from a “strong sell” rating to a “hold” rating in a research report on Monday, July 27th. Citizens Jmp increased 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. B. Riley Financial restated a “buy” rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Craig Hallum lifted their price target on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $68.15.

Applied Digital Stock Down 5.0%

The business’s fifty day moving average is $32.78 and its two-hundred day moving average is $33.58. The stock has a market cap of $7.93 billion, a price-to-earnings ratio of -30.57 and a beta of 5.75. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88.

Applied Digital (NASDAQ:APLD) last released its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The business had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.Applied Digital’s quarterly revenue was up 406.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.24) earnings per share. Equities analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 75,000 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 9.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cannon Capital Management Inc. purchased a new position in Applied Digital in the fourth quarter worth approximately $3,635,000. Whitaker Myers Wealth Managers LTD. purchased a new stake in shares of Applied Digital in the 2nd quarter valued at approximately $1,841,000. M&T Bank Corp purchased a new stake in shares of Applied Digital in the 4th quarter valued at approximately $2,232,000. Quent Capital LLC purchased a new stake in shares of Applied Digital in the 4th quarter valued at approximately $711,000. Finally, Dupree Financial Group LLC acquired a new stake in shares of Applied Digital in the 4th quarter valued at $1,260,000. 65.67% of the stock is 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.