Applied Digital (NASDAQ:APLD) Shares Down 10.5% - Here's What Happened

Key Points

• Applied Digital shares fell 10.5% on Friday to about $25.14 (intraday low $25.07) on roughly 20.3 million shares traded, about 35% below its average daily volume.
• The stock carries a MarketBeat consensus rating of "Buy" with a $37 consensus price target, and several recent analyst upgrades (B. Riley raised its target to $53).
• Insiders have sold roughly 244,593 shares (~$9.0M) in the past three months — including CEO Wes Cummins' 165,000-share sale — while insiders own 9.5% and institutions hold about 65.7% of the shares.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price dropped 10.5% on Friday . The stock traded as low as $25.07 and last traded at $25.14. Approximately 20,315,569 shares changed hands during trading, a decline of 35% from the average daily volume of 31,330,688 shares. The stock had previously closed at $28.09.

Analyst Upgrades and Downgrades

Several analysts have issued reports on APLD shares. Freedom Capital raised shares of Applied Digital to a "strong-buy" rating in a report on Tuesday, January 6th. Roth Mkm restated a "buy" rating on shares of Applied Digital in a research report on Tuesday, February 17th. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Texas Capital raised Applied Digital to a "strong-buy" rating in a research report on Tuesday, January 20th. Finally, B. Riley Financial boosted their price target on Applied Digital to $53.00 and gave the stock a "buy" rating in a report on Friday, January 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Applied Digital presently has a consensus rating of "Buy" and a consensus price target of $37.00.

Applied Digital Trading Down 10.5%

The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79. The stock has a market capitalization of $7.03 billion, a price-to-earnings ratio of -46.54 and a beta of 7.20. The business has a 50 day simple moving average of $32.61 and a 200-day simple moving average of $27.81.

Insider Activity at Applied Digital

In other Applied Digital news, CEO Wes Cummins sold 165,000 shares of the stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the transaction, the chief executive officer owned 4,176,329 shares of the company's stock, valued at $152,101,902.18. This trade represents a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Chuck Hastings sold 45,987 shares of Applied Digital stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the completion of the transaction, the director owned 388,372 shares in the company, valued at approximately $14,979,508.04. This trade represents a 10.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 244,593 shares of company stock worth $9,003,278. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in the company. Noble Wealth Management PBC acquired a new position in shares of Applied Digital in the 4th quarter valued at about $25,000. Albion Financial Group UT purchased a new position in Applied Digital in the fourth quarter valued at approximately $25,000. Activest Wealth Management acquired a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Ameriflex Group Inc. acquired a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Finally, McMillan Office Inc. purchased a new stake in Applied Digital during the fourth quarter worth approximately $25,000. 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.

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