Applied Digital (NASDAQ:APLD) Shares Down 1.3% - Time to Sell?

Key Points

• Applied Digital shares fell 1.3% in mid-day trading, though the stock was still trading well above its 50-day and 200-day moving averages.
• Analyst sentiment remains positive overall: the stock has a consensus Buy rating and an average price target of $59.11, with several firms recently raising their targets.
• The company reported mixed quarterly results last quarter, missing EPS estimates but beating revenue expectations with 139.3% year-over-year revenue growth; insiders also sold shares recently.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price was down 1.3% during mid-day trading on Thursday . The company traded as low as $41.86 and last traded at $44.15. Approximately 14,410,600 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 25,804,285 shares. The stock had previously closed at $44.71.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on APLD shares. Zacks Research upgraded shares of Applied Digital from a "strong sell" rating to a "hold" rating in a report on Thursday, May 7th. Lake Street Capital reiterated a "buy" rating and issued a $70.00 price objective (up from $55.00) on shares of Applied Digital in a report on Thursday, May 21st. Compass Point reissued a "buy" rating and set a $70.00 target price on shares of Applied Digital in a research report on Friday, May 22nd. Citizens Jmp boosted their target price 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. Finally, Needham & Company LLC boosted their target price on shares of Applied Digital from $51.00 to $66.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $59.11.

Applied Digital Price Performance

The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock's 50-day moving average price is $35.61 and its 200 day moving average price is $31.86. The firm has a market cap of $12.62 billion, a price-to-earnings ratio of -59.66 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The company had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter in the previous year, the business posted ($0.08) EPS. The firm's quarterly revenue was up 139.3% on a year-over-year basis. Equities research analysts predict that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction dated 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 owned 208,378 shares in the company, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the sale, the director owned 184,859 shares of the company's stock, valued at approximately $6,466,367.82. The trade was a 5.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently made changes to their positions in APLD. AQR Capital Management LLC lifted its stake in shares of Applied Digital by 84.8% in the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock valued at $106,000 after buying an additional 8,692 shares during the period. NewEdge Advisors LLC lifted its stake in shares of Applied Digital by 239.1% in the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock valued at $187,000 after buying an additional 23,457 shares during the period. Geneos Wealth Management Inc. raised its position in Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after purchasing an additional 3,542 shares in the last quarter. Strs Ohio acquired a new position in Applied Digital in the first quarter worth about $71,000. Finally, Cetera Investment Advisers raised its position in Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock worth $621,000 after purchasing an additional 23,360 shares in the last quarter. 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.

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