Applied Digital (NASDAQ:APLD) Shares Down 3% - Here's Why

Key Points

• Applied Digital shares fell 3% to $26.38 in midday trading, with about 21.7 million shares changing hands.
• Analyst sentiment remains mixed, but the stock carries a consensus “Moderate Buy” rating and an average price target of $67.15, well above its current price.
• Institutional investors own 65.67% of the company, while insiders own 9.50%; director Richard N. Nottenburg recently sold 12,500 shares at an average price of $34.59.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was down 3% on Monday . The stock traded as low as $25.77 and last traded at $26.38. Approximately 21,726,527 shares changed hands during mid-day trading, a decline of 11% from the average session volume of 24,357,430 shares. The stock had previously closed at $27.19.

Wall Street Analysts Forecast Growth

APLD has been the subject of several analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research report on Tuesday, July 21st. Lucid Cap Mkts upgraded Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Zacks Research cut Applied Digital from a "hold" rating to a "strong sell" rating in a research note on Monday, June 8th. Northland Securities set a $82.00 price target on Applied Digital and gave the company an "outperform" rating in a research note on Wednesday, June 17th. Finally, B. Riley Financial restated a "buy" rating and set a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $67.15.

Applied Digital Stock Performance

The stock's 50 day moving average price is $38.80 and its 200 day moving average price is $34.57. 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 company has a market capitalization of $7.54 billion, a P/E ratio of -35.65 and a beta of 5.67.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the business's stock in a transaction 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 transaction, the director owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 9.50% of the stock is currently owned by insiders.

Institutional Trading of Applied Digital

A number of large investors have recently bought and sold shares of the business. Cambridge Investment Research Advisors Inc. lifted its stake in shares of Applied Digital by 39.6% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company's stock valued at $5,469,000 after purchasing an additional 41,562 shares during the period. Handelsbanken Fonder AB boosted its position in shares of Applied Digital by 1.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company's stock valued at $2,671,000 after purchasing an additional 700 shares in the last quarter. Whitaker Myers Wealth Managers LTD. acquired a new stake in Applied Digital during the second quarter worth approximately $1,841,000. Hennion & Walsh Asset Management Inc. grew its stake in Applied Digital by 102.3% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 41,787 shares of the company's stock worth $1,559,000 after purchasing an additional 21,130 shares during the period. Finally, TrueWealth Advisors LLC bought a new stake in Applied Digital in the second quarter worth approximately $381,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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