Applied Digital (NASDAQ:APLD) Trading Down 3% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price was down 3% on Friday . The company traded as low as $24.87 and last traded at $25.8860. Approximately 17,332,604 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 28,339,674 shares. The stock had previously closed at $26.70.

Analyst Ratings Changes

A number of research firms have commented on APLD. Lake Street Capital reissued a “buy” rating and issued a $45.00 price objective on shares of Applied Digital in a research note on Tuesday, December 30th. Arete Research assumed coverage on Applied Digital in a research report on Wednesday, January 7th. They issued a “buy” rating on the stock. Freedom Capital raised shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 6th. Northland Securities set a $56.00 price objective on Applied Digital in a report on Wednesday, January 28th. Finally, B. Riley Financial upped their target price on shares of Applied Digital to $53.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $37.00.

Applied Digital Price Performance

The stock has a market capitalization of $7.24 billion, a P/E ratio of -47.94 and a beta of 7.20. The company’s 50-day simple moving average is $32.60 and its 200-day simple moving average is $28.58. The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82.

Insiders Place Their Bets

In other Applied Digital news, CEO Wes Cummins sold 165,000 shares of the stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the transaction, the chief executive officer directly owned 4,176,329 shares of the company’s stock, valued at $152,101,902.18. This represents a 3.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Chuck Hastings sold 45,987 shares of the stock in a transaction that occurred on Thursday, January 29th. The stock was sold at an average price of $38.57, for a total value of $1,773,718.59. Following the transaction, the director owned 388,372 shares in the company, valued at approximately $14,979,508.04. This trade represents a 10.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 244,593 shares of company stock valued at $9,003,278. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently modified their holdings of APLD. Vanguard Group Inc. grew its position in shares of Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after purchasing an additional 6,445,908 shares in the last quarter. Hood River Capital Management LLC raised its holdings in shares of Applied Digital by 2.8% during the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock worth $220,120,000 after buying an additional 592,314 shares in the last quarter. Situational Awareness LP raised its stake in Applied Digital by 87.0% during the fourth 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 in the last quarter. Geode Capital Management LLC increased its position in Applied Digital by 5.1% during the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock worth $154,151,000 after purchasing an additional 304,228 shares in the last quarter. Finally, Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital during the fourth quarter worth $138,380,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.