Applied Digital (NASDAQ:APLD) Shares Down 8.3% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 8.3% during mid-day trading on Tuesday . The company traded as low as $30.24 and last traded at $30.71. 15,293,534 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 25,021,479 shares. The stock had previously closed at $33.50.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Compass Point restated a “buy” rating and set a $70.00 price objective on shares of Applied Digital in a research report on Friday, May 22nd. Zacks Research lowered shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Monday, June 8th. Craig Hallum boosted 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. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Friday, April 24th. Finally, Roth Capital reaffirmed a “buy” rating and set a $65.00 price objective on shares of Applied Digital in a report on Thursday, April 23rd. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $70.56.

Applied Digital Price Performance

The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The firm has a market capitalization of $9.23 billion, a price-to-earnings ratio of -43.57 and a beta of 5.67. The company has a fifty day moving average price of $41.64 and a two-hundred day moving average price of $34.33.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). The business had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business’s revenue was up 139.3% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.08) earnings per share. On average, equities research analysts expect that Applied Digital Corporation will post -0.7 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Richard N. Nottenburg sold 12,500 shares of the firm’s stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director owned 208,378 shares of the company’s stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director owned 184,859 shares in the company, valued at $6,466,367.82. This trade represents a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Noble Wealth Management PBC purchased a new stake in shares of Applied Digital during the fourth quarter worth approximately $25,000. Albion Financial Group UT acquired a new position in Applied Digital in the 4th quarter valued at $25,000. Activest Wealth Management acquired a new position in Applied Digital in the 4th quarter valued at $25,000. Ameriflex Group Inc. purchased a new position in Applied Digital during the 4th quarter worth $25,000. Finally, McMillan Office Inc. purchased a new position in Applied Digital during the 4th quarter worth $25,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.