Applied Digital (NASDAQ:APLD) Shares Down 3.9% – Should You Sell?

Shares of 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 were traded during mid-day trading, a decline of 39% from the average session volume of 50,556,488 shares. The stock had previously closed at $38.21.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Citigroup restated an “outperform” rating on shares of Applied Digital in a report on Tuesday, December 30th. Compass Point started coverage on shares of Applied Digital in a report on Monday, September 15th. They issued a “buy” rating on the stock. HC Wainwright upped their price objective on shares of Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Roth Capital increased their target price on shares of Applied Digital to $58.00 and gave the stock a “buy” rating in a report on Thursday, January 8th. Finally, Northland Securities restated an “outperform” rating and set a $40.00 price target on shares of Applied Digital in a report on Tuesday, December 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Buy” and an average target price of $33.27.

Applied Digital Stock Down 3.9%

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

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results 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). Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The company had revenue of $126.59 million for the quarter, compared to analysts’ expectations of $82.22 million. During the same quarter in the prior year, the firm earned ($0.06) EPS. Applied Digital’s quarterly revenue was up 250.1% compared to the same quarter last year. Research analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 100,000 shares of the stock in a transaction that occurred on Friday, October 24th. The stock was sold at an average price of $34.08, for a total value of $3,408,000.00. Following the completion of the transaction, the chief financial officer owned 158,912 shares of the company’s stock, valued at approximately $5,415,720.96. This represents a 38.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction that occurred on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total value of $1,502,685.70. Following the sale, the director owned 69,256 shares in the company, valued at $2,444,736.80. This represents a 38.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 328,035 shares of company stock worth $11,376,479. Company insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the business. Noble Wealth Management PBC purchased a new position in shares of Applied Digital during the fourth quarter valued at approximately $25,000. Larson Financial Group LLC lifted its position in shares of Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after buying an additional 1,129 shares in the last quarter. Dagco Inc. bought a new position in shares of Applied Digital in the third quarter worth approximately $27,000. GAMMA Investing LLC increased its stake in Applied Digital by 87.5% in the 4th quarter. GAMMA Investing LLC now owns 1,376 shares of the company’s stock worth $34,000 after buying an additional 642 shares in the last quarter. Finally, Evolution Wealth Management Inc. raised its position in shares of Applied Digital by 101.8% during the third quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company’s stock valued at $37,000 after buying an additional 807 shares during the last quarter. Hedge funds and other 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.