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

Applied Digital Corporation (NASDAQ:APLD)’s share price dropped 3% during mid-day trading on Monday . The stock traded as low as $44.62 and last traded at $45.20. Approximately 16,162,872 shares changed hands 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

A number of analysts recently weighed in on the stock. 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 report on Thursday, May 21st. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Monday, June 8th. Lucid Cap Mkts raised Applied Digital to a “strong-buy” rating in a research note on Wednesday, May 27th. Craig Hallum boosted their price objective on Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Finally, Needham & Company LLC upped their price objective on Applied Digital from $66.00 to $83.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $70.56.

Applied Digital Stock Performance

The company has a market capitalization of $11.97 billion, a PE ratio of -56.61 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. The firm’s 50-day simple moving average is $40.80 and its 200-day simple moving average is $33.74.

Applied Digital (NASDAQ:APLD) last issued its 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). The company had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business’s revenue was up 139.3% compared to the same quarter last year. During the same period last year, the business posted ($0.08) earnings per share. On average, research analysts predict that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Douglas S. Miller sold 10,000 shares of the firm’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 transaction, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Noble Wealth Management PBC bought a new stake in shares of Applied Digital in the 4th quarter valued at about $25,000. Albion Financial Group UT bought a new position in shares of Applied Digital during the fourth quarter valued at approximately $25,000. Activest Wealth Management purchased a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Ameriflex Group Inc. purchased a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Finally, McMillan Office Inc. bought a new position in Applied Digital in the fourth quarter worth approximately $25,000. 65.67% of the stock is currently owned by institutional investors.

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.