Applied Digital (NASDAQ:APLD) Shares Down 5.3% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD) shares fell 5.3% during mid-day trading on Thursday . The stock traded as low as $36.99 and last traded at $38.07. 30,253,080 shares traded hands during trading, a decline of 29% from the average session volume of 42,366,355 shares. The stock had previously closed at $40.22.

Analyst Ratings Changes

A number of research firms have recently weighed in on APLD. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research note on Wednesday. Arete Research initiated coverage on shares of Applied Digital in a research report on Wednesday, January 7th. They set a “buy” rating for the company. Roth Mkm boosted their price objective on shares of Applied Digital to $58.00 and gave the company a “buy” rating in a research report on Thursday, January 8th. Northland Securities set a $56.00 price objective on shares of Applied Digital in a research note on Wednesday. Finally, Lake Street Capital reissued a “buy” rating and issued a $45.00 target price on shares of Applied Digital in a research note on Tuesday, December 30th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, Applied Digital currently has an average rating of “Buy” and an average price target of $34.73.

Applied Digital Trading Down 11.0%

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 cap of $9.47 billion, a PE ratio of -62.74 and a beta of 6.89. The stock’s fifty day simple moving average is $30.33 and its two-hundred day simple moving average is $24.56.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, January 7th. The company reported ($0.11) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The company had revenue of $126.59 million during the quarter, compared to the consensus estimate of $82.22 million. Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The company’s revenue was up 250.1% compared to the same quarter last year. During the same period last year, the firm posted ($0.06) earnings per share. On average, sell-side analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Activity

In related news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $38.54, for a total value of $385,400.00. Following the completion of the transaction, the director directly owned 200,859 shares in the company, valued at $7,741,105.86. The trade was a 4.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Wes Cummins sold 165,000 shares of the business’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $36.42, for a total value of $6,009,300.00. Following the completion of the transaction, the chief executive officer owned 4,176,329 shares of the company’s stock, valued at $152,101,902.18. This represents a 3.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 244,593 shares of company stock worth $9,003,278 over the last three months. 9.50% of the stock is currently owned by insiders.

Institutional Trading of Applied Digital

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Applied Digital by 36.4% in the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after purchasing an additional 6,445,908 shares during the period. Hood River Capital Management LLC grew its holdings in Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock valued at $220,120,000 after purchasing an additional 592,314 shares during the period. Situational Awareness LP grew its stake in shares of Applied Digital by 63.3% during the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock valued at $66,379,000 after acquiring an additional 2,556,200 shares during the period. BNP Paribas Financial Markets increased its stake in shares of Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Applied Digital by 20.2% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,199,135 shares of the company’s stock worth $73,388,000 after buying an additional 537,839 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

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.