Applied Digital (NASDAQ:APLD) Trading Down 7.9% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 7.9% during mid-day trading on Friday . The stock traded as low as $28.37 and last traded at $29.04. Approximately 23,724,587 shares changed hands during trading, a decline of 33% from the average daily volume of 35,534,207 shares. The stock had previously closed at $31.53.

Wall Street Analysts Forecast Growth

APLD has been the topic of a number of recent analyst reports. Texas Capital raised Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 20th. Roth Mkm reiterated a “buy” rating on shares of Applied Digital in a report on Tuesday. B. Riley Financial boosted their price objective on shares of Applied Digital to $53.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. Craig Hallum raised their target price on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. Finally, Arete Research started coverage on shares of Applied Digital in a report on Wednesday, January 7th. They issued a “buy” rating on the stock. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Buy” and a consensus price target of $37.00.

Applied Digital Stock Performance

The firm’s 50 day moving average price is $31.99 and its 200-day moving average price is $26.83. The firm has a market cap of $8.12 billion, a price-to-earnings ratio of -53.78 and a beta of 7.25. The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82.

Insider Activity at Applied Digital

In related news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $38.54, for a total transaction of $385,400.00. Following 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the completion of the sale, the director owned 233,378 shares of the company’s stock, valued at $8,273,250.10. This represents a 4.89% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 244,593 shares of company stock worth $9,003,278. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Applied Digital by 36.4% during the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after buying an additional 6,445,908 shares in the last quarter. Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital in the 4th quarter valued at $138,380,000. Situational Awareness LP lifted its holdings in shares of Applied Digital by 87.0% during the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock worth $278,034,000 after acquiring an additional 5,274,905 shares during the period. BNP Paribas Financial Markets boosted its position in shares of Applied Digital by 24,356.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after acquiring an additional 5,198,223 shares in the last quarter. Finally, Marex Group plc increased its stake in Applied Digital by 38,484.6% in the fourth quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock valued at $95,745,000 after acquiring an additional 3,894,639 shares during the period. 65.67% of the stock is currently 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.