Applied Digital (NASDAQ:APLD) Stock Price Down 6.5% – Should You Sell?

Shares of Applied Digital Corporation (NASDAQ:APLD) fell 6.5% during mid-day trading on Friday . The stock traded as low as $23.96 and last traded at $24.05. 15,263,441 shares were traded during trading, a decline of 56% from the average session volume of 34,838,047 shares. The stock had previously closed at $25.72.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. B. Riley reaffirmed a “buy” rating on shares of Applied Digital in a research report on Wednesday, October 22nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. Compass Point initiated coverage on Applied Digital in a report on Monday, September 15th. They set a “buy” rating for the company. Needham & Company LLC restated a “buy” rating and issued a $41.00 price target on shares of Applied Digital in a research note on Wednesday, October 29th. Finally, Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a research report on Sunday, October 19th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $26.20.

Applied Digital Stock Performance

The stock has a market cap of $6.72 billion, a price-to-earnings ratio of -21.28 and a beta of 6.94. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The company has a 50 day simple moving average of $28.57 and a 200 day simple moving average of $20.46.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The business had revenue of $64.22 million during the quarter, compared to analysts’ expectations of $52.25 million. During the same period in the prior year, the company earned ($0.15) EPS. The firm’s quarterly revenue was up 84.3% compared to the same quarter last year. As a group, equities research analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Rachel H. Lee sold 24,213 shares of the company’s stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $33.20, for a total value of $803,871.60. Following the completion of the transaction, the director owned 59,400 shares of the company’s stock, valued at $1,972,080. This represents a 28.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of the stock in a transaction dated Tuesday, October 28th. The shares were sold at an average price of $36.47, for a total value of $1,367,734.41. Following the completion of the transaction, the chief financial officer owned 121,409 shares of the company’s stock, valued at $4,427,786.23. This represents a 23.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 328,035 shares of company stock worth $11,376,479 over the last three months. 9.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in APLD. Hood River Capital Management LLC raised its stake in shares of Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock valued at $220,120,000 after acquiring an additional 592,314 shares during the last quarter. Vanguard Group Inc. raised its position in Applied Digital by 23.2% during the 3rd quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock worth $406,547,000 after purchasing an additional 3,339,062 shares during the last quarter. Situational Awareness LP lifted its holdings in Applied Digital by 63.3% during the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock worth $66,379,000 after buying an additional 2,556,200 shares during the period. BNP Paribas Financial Markets lifted its holdings in 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 worth $52,561,000 after buying an additional 5,198,223 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Applied Digital by 20.2% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,199,135 shares of the company’s stock valued at $73,388,000 after buying an additional 537,839 shares during the last quarter. 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.