Applied Digital (NASDAQ:APLD) Shares Down 2.5% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price fell 2.5% during mid-day trading on Friday . The company traded as low as $33.52 and last traded at $35.28. 22,330,989 shares changed hands during trading, a decline of 40% from the average session volume of 37,463,402 shares. The stock had previously closed at $36.17.

Analysts Set New Price Targets

Several research firms recently issued reports on APLD. Craig Hallum boosted their price target on Applied Digital to $39.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research report on Wednesday, January 28th. Lake Street Capital restated a “buy” rating and issued a $45.00 price target on shares of Applied Digital in a research note on Tuesday, December 30th. Needham & Company LLC reiterated a “buy” rating and issued a $41.00 price objective on shares of Applied Digital in a research note on Thursday, January 8th. Finally, Texas Capital raised shares of Applied Digital to a “strong-buy” rating in a report on Tuesday, January 20th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Applied Digital presently has a consensus rating of “Buy” and an average price target of $34.73.

Applied Digital Stock Down 2.5%

The firm’s 50-day moving average price is $31.79 and its 200 day moving average price is $26.06. 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 company has a market capitalization of $9.86 billion, a price-to-earnings ratio of -65.33 and a beta of 7.25.

Insider Activity

In related news, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the completion of the sale, the chief executive officer directly owned 4,176,329 shares in the company, valued at $152,101,902.18. This represents a 3.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction dated 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 sale, the director directly owned 200,859 shares in the company, valued at $7,741,105.86. This trade represents a 4.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 244,593 shares of company stock valued at $9,003,278 in the last three months. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Newbridge Financial Services Group Inc. increased its position in Applied Digital by 8.6% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock worth $93,000 after purchasing an additional 300 shares in the last quarter. Concurrent Investment Advisors LLC grew its stake in shares of Applied Digital by 1.5% during 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 increased its holdings in shares of 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 in the last quarter. ProShare Advisors LLC increased its holdings in shares of Applied Digital by 1.0% during the third quarter. ProShare Advisors LLC now owns 36,652 shares of the company’s stock worth $841,000 after buying an additional 376 shares in the last quarter. Finally, Independent Advisor Alliance lifted its stake in shares of Applied Digital by 4.6% in the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock valued at $226,000 after acquiring an additional 407 shares during the last quarter. Institutional investors own 65.67% of the company’s stock.

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.