Applied Digital (NASDAQ:APLD) Shares Down 3.4% on Insider Selling

Key Points

• Applied Digital shares fell 3.4% to $28.86 after director Richard N. Nottenburg sold 75,000 shares for approximately $2.34 million, reducing his position by 35.99%.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $68.15, although some firms maintain sell ratings.
• The company reported quarterly revenue of $240.35 million, up 406.3% year over year, but its $0.39-per-share loss significantly exceeded analysts’ expected loss of $0.09.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were down 3.4% during trading on Thursday after an insider sold shares in the company. The company traded as low as $28.17 and last traded at $28.86. Approximately 12,499,904 shares traded hands during trading, a decline of 49% from the average session volume of 24,360,061 shares. The stock had previously closed at $29.87.

Specifically, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director owned 133,378 shares in the company, valued at $4,154,724.70. This represents a 35.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Wall Street Analysts Forecast Growth

APLD has been the topic of several recent analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Digital in a research report on Tuesday, July 21st. Citizens Jmp boosted their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a research report on Thursday, May 21st. Craig Hallum increased their price target on Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Wall Street Zen cut shares of Applied Digital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Finally, Needham & Company LLC restated a "buy" rating and set a $83.00 price target on shares of Applied Digital in a research note on Tuesday, July 28th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Applied Digital currently has a consensus rating of "Moderate Buy" and a consensus price target of $68.15.

Applied Digital Price Performance

The company's 50-day simple moving average is $36.26 and its 200-day simple moving average is $34.19. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The company has a market capitalization of $8.41 billion, a PE ratio of -32.43 and a beta of 5.75.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). The business had revenue of $240.35 million during the quarter, compared to analysts' expectations of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm's quarterly revenue was up 406.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.24) earnings per share. As a group, sell-side analysts anticipate that Applied Digital Corporation will post -0.98 earnings per share for the current year.

Institutional Trading of Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Albion Financial Group UT bought a new stake in shares of Applied Digital during the fourth quarter valued at approximately $25,000. Activest Wealth Management bought a new position in shares of Applied Digital during the 4th quarter valued at $25,000. Ameriflex Group Inc. acquired a new stake in shares of Applied Digital in the fourth quarter worth $25,000. McMillan Office Inc. bought a new stake in Applied Digital during the fourth quarter valued at about $25,000. Finally, Larson Financial Group LLC grew its holdings in Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock valued at $26,000 after buying an additional 1,129 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.

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