Applied Digital (NASDAQ:APLD) Stock Price Down 3.5% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price dropped 3.5% on Monday . The company traded as low as $36.10 and last traded at $37.77. Approximately 19,876,933 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 25,320,521 shares. The stock had previously closed at $39.16.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Citigroup reissued a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. B. Riley Financial reissued a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Finally, Northland Securities set a $82.00 target price on Applied Digital and gave the company an “outperform” rating in a research report on Wednesday, June 17th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Applied Digital currently has a consensus rating of “Moderate Buy” and an average 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 business’s 50-day moving average is $41.44 and its two-hundred day moving average is $33.93. The company has a market capitalization of $10.79 billion, a P/E ratio of -51.04 and a beta of 5.69.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). The firm had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company’s revenue for the quarter was up 139.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.08) earnings per share. As a group, analysts predict that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction that occurred 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 sale, the director directly owned 184,859 shares of the company’s stock, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 35,000 shares of company stock worth $1,182,175 in the last 90 days. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of APLD. AQR Capital Management LLC increased its position in shares of Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock valued at $106,000 after purchasing an additional 8,692 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Applied Digital by 239.1% in the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after buying an additional 23,457 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Applied Digital by 113.3% during the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock valued at $37,000 after buying an additional 3,542 shares during the period. Strs Ohio bought a new position in Applied Digital during the first quarter valued at about $71,000. Finally, Cetera Investment Advisers increased its holdings in Applied Digital by 61.0% during the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company’s stock worth $621,000 after buying an additional 23,360 shares during the last quarter. 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.