Applied Digital (NASDAQ:APLD) Shares Down 14.1% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD) shares traded down 14.1% during trading on Wednesday . The stock traded as low as $29.75 and last traded at $31.54. 38,073,863 shares changed hands during mid-day trading, a decline of 5% from the average session volume of 40,169,121 shares. The stock had previously closed at $36.70.

Analysts Set New Price Targets

APLD has been the topic of several analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Arete Research initiated coverage on shares of Applied Digital in a report on Wednesday, January 7th. They issued a “buy” rating on the stock. Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Texas Capital upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 20th. Finally, Freedom Capital raised shares of Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $34.73.

Applied Digital Stock Performance

The firm has a market cap of $8.82 billion, a price-to-earnings ratio of -58.41 and a beta of 7.25. The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The firm has a fifty day simple moving average of $30.81 and a two-hundred day simple moving average of $25.10.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The company had revenue of $126.59 million for the quarter, compared to analyst estimates of $82.22 million. During the same quarter last year, the company earned ($0.06) EPS. The business’s revenue was up 250.1% compared to the same quarter last year. On average, analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Transactions at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $38.54, for a total value of $385,400.00. Following the transaction, the director directly owned 200,859 shares of the company’s stock, valued at approximately $7,741,105.86. This represents a 4.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Chuck Hastings sold 45,987 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the director owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. The trade was a 10.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 244,593 shares of company stock valued at $9,003,278 in the last quarter. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

A number of large investors have recently bought and sold shares of APLD. Noble Wealth Management PBC purchased a new position in Applied Digital during the 4th quarter worth approximately $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. Activest Wealth Management purchased a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. Larson Financial Group LLC increased its stake in shares of Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after acquiring an additional 1,129 shares during the period. Finally, Dagco Inc. purchased a new position in shares of Applied Digital during the third quarter worth $27,000. Hedge funds and other 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.