Applied Digital (NASDAQ:APLD) Shares Down 4.8% - Time to Sell?

Key Points

• Applied Digital shares fell 4.8% on Wednesday, trading as low as $35.07 amid lighter-than-average volume before ending at $35.52.
• Analyst sentiment remains mixed but generally positive: the stock carries a Moderate Buy consensus with a consensus target price of $70.56, though Weiss Ratings reiterated a sell rating. Several firms recently raised their price targets, including Citizens JMP to $60 and Lake Street Capital to $90.
• The company posted better-than-expected revenue of $108.55 million in its latest quarter, but earnings missed estimates and remained negative. Insiders have also been selling shares, while institutional investors continue to hold a large majority of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was down 4.8% on Wednesday . The company traded as low as $35.07 and last traded at $35.52. 18,550,259 shares traded hands during mid-day trading, a decline of 26% from the average daily volume of 25,207,504 shares. The stock had previously closed at $37.30.

Analysts Set New Price Targets

Several research firms recently issued reports on APLD. Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th. Citizens Jmp raised their price target on Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a research note on Thursday, May 21st. Lake Street Capital boosted their price target on Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Compass Point reissued a "buy" rating and issued a $70.00 price objective on shares of Applied Digital in a report on Friday, May 22nd. Finally, Lucid Cap Mkts raised shares of Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, Applied Digital currently has a consensus rating of "Moderate Buy" and a consensus target price of $70.56.

Applied Digital Price Performance

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 firm has a market capitalization of $10.15 billion, a price-to-earnings ratio of -48.00 and a beta of 5.69. The company's 50 day moving average is $41.71 and its 200-day moving average is $34.01.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) 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 business had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter in the prior year, the company earned ($0.08) EPS. Applied Digital's quarterly revenue was up 139.3% on a year-over-year basis. Equities research analysts anticipate that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the firm's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the transaction, the director directly owned 184,859 shares of the company's stock, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its holdings in shares of Applied Digital by 36.4% during the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock worth $592,601,000 after acquiring an additional 6,445,908 shares during the period. Situational Awareness LP boosted its stake in Applied Digital by 18.9% in the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after purchasing an additional 2,139,378 shares during the period. Geode Capital Management LLC boosted its stake in Applied Digital by 5.1% in the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock valued at $154,151,000 after purchasing an additional 304,228 shares during the period. Value Aligned Research Advisors LLC acquired a new position in Applied Digital in the 4th quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets grew its holdings in Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after buying an additional 5,198,223 shares in the last quarter. 65.67% of the stock is owned by institutional investors.

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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