Applied Digital (NASDAQ:APLD) Shares Down 3.7% - Should You Sell?

Key Points

• Shares fell 3.7% intraday to $33.67 on lighter-than-average volume (≈20.65M shares, down 24% vs. the 27.1M average).
• Analysts are mixed but overall cautious — MarketBeat shows a “Moderate Buy” consensus with a $44.33 price target (2 Strong Buy, 11 Buy, 2 Sell).
• Applied Digital missed EPS in the latest quarter (−$0.36 vs. −$0.13 expected) despite a strong revenue beat ($108.6M vs. $78.5M), and the company remains unprofitable with large negative margins.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were down 3.7% during mid-day trading on Monday . The stock traded as low as $33.31 and last traded at $33.67. Approximately 20,652,226 shares traded hands during trading, a decline of 24% from the average daily volume of 27,111,127 shares. The stock had previously closed at $34.98.

Wall Street Analysts Forecast Growth

APLD has been the subject of several recent research reports. Lake Street Capital reissued a "buy" rating and issued a $45.00 price objective on shares of Applied Digital in a research report on Tuesday, December 30th. Arete Research initiated coverage on shares of Applied Digital in a research report on Wednesday, January 7th. They issued a "buy" rating for the company. Wall Street Zen lowered shares of Applied Digital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Roth Mkm reissued a "buy" rating and issued a $65.00 price objective on shares of Applied Digital in a research report on Thursday. Finally, Texas Capital raised shares of Applied Digital to a "strong-buy" rating in a report on Tuesday, January 20th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, Applied Digital presently has a consensus rating of "Moderate Buy" and a consensus price target of $44.33.

Applied Digital Stock Down 3.7%

The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a market capitalization of $9.62 billion, a P/E ratio of -45.50 and a beta of 7.25. The stock's 50 day simple moving average is $28.27 and its 200 day simple moving average is $30.01.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data 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 net margin of 52.84% and a negative return on equity of 15.91%. The company had revenue of $108.55 million for the quarter, compared to the consensus estimate of $78.47 million. During the same quarter last year, the company earned ($0.08) earnings per share. The company's revenue was up 139.3% compared to the same quarter last year. As a group, research analysts predict that Applied Digital Corporation will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling

In other Applied Digital news, Director Chuck Hastings sold 45,987 shares of the 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 transaction, the director directly owned 388,372 shares in the company, valued at $14,979,508.04. This represents a 10.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. lifted its position in shares of Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock worth $93,000 after buying an additional 300 shares during the last quarter. Concurrent Investment Advisors LLC lifted its position in shares of Applied Digital by 1.5% in the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company's stock worth $523,000 after buying an additional 318 shares during the last quarter. Brookstone Capital Management lifted its position in shares of Applied Digital by 3.6% in the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock worth $227,000 after buying an additional 321 shares during the last quarter. ProShare Advisors LLC lifted its position in shares of Applied Digital by 1.0% in the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company's stock worth $841,000 after buying an additional 376 shares during the last quarter. Finally, Independent Advisor Alliance lifted its position in shares of Applied Digital by 4.6% in the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company's stock worth $226,000 after buying an additional 407 shares during the last quarter. 65.67% of the stock is currently 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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