Applied Digital (NASDAQ:APLD) Trading Down 3% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares fell 3% during trading on Monday . The stock traded as low as $44.62 and last traded at $45.20. Approximately 16,162,872 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 25,429,947 shares. The stock had previously closed at $46.59.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on APLD. Roth Mkm reissued a “buy” rating and issued a $65.00 target price on shares of Applied Digital in a research report on Thursday, April 23rd. Citizens Jmp increased their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a report on Monday, June 8th. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Tuesday, June 9th. Finally, B. Riley Financial reissued a “buy” rating and set a $66.00 price target (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $70.56.

Applied Digital Price Performance

The stock has a 50 day simple moving average of $40.02 and a 200-day simple moving average of $33.50. The firm has a market cap of $12.92 billion, a PE ratio of -61.08 and a beta of 5.69. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD) last posted its quarterly 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). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million during the quarter, compared to analysts’ expectations of $78.47 million. During the same period in the prior year, the firm posted ($0.08) earnings per share. The firm’s revenue for the quarter was up 139.3% on a year-over-year basis. Equities analysts anticipate that Applied Digital Corporation will post -0.68 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the transaction, the director owned 208,378 shares in the company, 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 document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares of the company’s stock, valued at $6,466,367.82. The trade was a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 35,000 shares of company stock worth $1,182,175. Corporate insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in APLD. Noble Wealth Management PBC purchased a new stake in Applied Digital during the fourth quarter valued at approximately $25,000. Albion Financial Group UT purchased a new position in shares of Applied Digital in the 4th quarter worth approximately $25,000. Activest Wealth Management bought a new position in shares of Applied Digital during the 4th quarter valued at approximately $25,000. Ameriflex Group Inc. bought a new position in shares of Applied Digital during the 4th quarter valued at approximately $25,000. Finally, McMillan Office Inc. purchased a new stake in Applied Digital during the 4th quarter valued at $25,000. 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.