Applied Digital (NASDAQ:APLD) Trading Down 4.2% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 4.2% on Friday . The stock traded as low as $37.96 and last traded at $39.2180. Approximately 47,201,363 shares were traded during trading, an increase of 86% from the average session volume of 25,315,219 shares. The stock had previously closed at $40.95.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on APLD shares. Compass Point reiterated a “buy” rating and set a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Northland Securities set a $82.00 price objective on Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Lucid Cap Mkts raised Applied Digital to a “strong-buy” rating in a report on Wednesday, May 27th. Craig Hallum raised their target price on Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Finally, B. Riley Financial reaffirmed a “buy” rating and set a $66.00 price target (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Applied Digital presently has an average rating of “Moderate Buy” and a consensus price target of $70.56.

Applied Digital Stock Performance

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 cap of $11.21 billion, a P/E ratio of -53.00 and a beta of 5.69. The business’s 50-day moving average price is $41.44 and its 200-day moving average price is $33.92.

Applied Digital (NASDAQ:APLD) last announced 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). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same period in the prior year, the business posted ($0.08) earnings per share. Applied Digital’s revenue for the quarter was up 139.3% compared to the same quarter last year. As a group, sell-side analysts expect that Applied Digital Corporation will post -0.68 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director directly 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 legal filing with the SEC, which can be accessed through this link. Also, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the sale, the director directly owned 184,859 shares of the company’s stock, valued at $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 35,000 shares of company stock worth $1,182,175 in the last ninety days. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently added to or reduced their stakes in APLD. Noble Wealth Management PBC purchased a new stake in shares of Applied Digital in the fourth quarter worth $25,000. Albion Financial Group UT purchased a new position in shares of Applied Digital during the 4th quarter valued at $25,000. Activest Wealth Management purchased a new position in shares of Applied Digital during the 4th quarter valued at $25,000. Ameriflex Group Inc. purchased a new position in shares of Applied Digital during the 4th quarter valued at $25,000. Finally, McMillan Office Inc. bought a new position in Applied Digital in the 4th quarter worth $25,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

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.