Applied Digital (NASDAQ:APLD) Trading Down 8.9% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD)’s stock price fell 8.9% during trading on Friday . The stock traded as low as $42.10 and last traded at $42.56. 17,622,283 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 26,357,557 shares. The stock had previously closed at $46.71.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Zacks Research raised shares of Applied Digital from a “strong sell” rating to a “hold” rating in a report on Thursday, May 7th. Citizens Jmp reaffirmed a “market outperform” rating and set a $40.00 price target on shares of Applied Digital in a report on Thursday, April 9th. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Needham & Company LLC lifted their price target on shares of Applied Digital to $51.00 and gave the company a “buy” rating in a report on Friday. Finally, Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Wednesday, January 28th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $44.67.

Applied Digital Stock Down 8.9%

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The stock has a market capitalization of $12.16 billion, a P/E ratio of -57.51 and a beta of 5.69. The stock’s fifty day simple moving average is $30.65 and its two-hundred day simple moving average is $30.53.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share 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 for the quarter, compared to the consensus estimate of $78.47 million. During the same period in the previous year, the firm earned ($0.08) earnings per share. The company’s revenue was up 139.3% compared to the same quarter last year. As a group, research analysts expect that Applied Digital Corporation will post -0.61 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the director directly owned 184,859 shares of the company’s stock, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 12,500 shares of the company’s 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 sale, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 35,000 shares of company stock worth $1,182,175. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted 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 valued at $592,601,000 after acquiring an additional 6,445,908 shares during the period. Situational Awareness LP lifted its position 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 valued at $278,034,000 after acquiring an additional 5,274,905 shares during the period. Geode Capital Management LLC lifted its position in shares of Applied Digital by 5.1% during the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after acquiring an additional 304,228 shares during the period. Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital during the 4th quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets lifted 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 during the period. 65.67% of the stock is owned by institutional investors.

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.