Applied Digital (NASDAQ:APLD) Shares Down 5.2% - What's Next?

Key Points

• Applied Digital shares fell 5.2% on Wednesday to about $29.08, with 18.55 million shares traded—roughly 46% below the average session volume of 34.06 million.
• Wall Street consensus is a Buy with an average price target of $37, and analyst targets range as high as $56 (two Strong Buy, twelve Buy, one Sell).
• Insiders sold 244,593 shares in the last quarter (≈$9.0M), reducing insider holdings to about 9.5%, a factor investors may view as a red flag.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) traded down 5.2% on Wednesday . The stock traded as low as $28.83 and last traded at $29.08. 18,547,267 shares changed hands during trading, a decline of 46% from the average session volume of 34,064,375 shares. The stock had previously closed at $30.66.

Wall Street Analyst Weigh In

APLD has been the subject of several research reports. Wall Street Zen raised shares of Applied Digital from a "sell" rating to a "hold" rating in a research report on Saturday, January 10th. Lake Street Capital restated a "buy" rating and issued a $45.00 target price on shares of Applied Digital in a research note on Tuesday, December 30th. Northland Securities set a $56.00 price objective on Applied Digital in a research note on Wednesday, January 28th. Needham & Company LLC reiterated a "buy" rating and set a $41.00 target price on shares of Applied Digital in a research note on Thursday, January 8th. Finally, Citigroup reissued an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Applied Digital currently has an average rating of "Buy" and a consensus price target of $37.00.

Applied Digital Trading Down 5.2%

The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82. The stock has a market cap of $8.13 billion, a P/E ratio of -53.85 and a beta of 7.25. The stock has a 50-day moving average price of $32.28 and a 200-day moving average price of $27.33.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Chuck Hastings sold 45,987 shares of the company's stock in a transaction dated 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 completion of the sale, the director directly owned 388,372 shares in the company, valued at $14,979,508.04. This represents a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $38.54, for a total value of $385,400.00. Following the transaction, the director owned 200,859 shares in the company, valued at approximately $7,741,105.86. The trade was a 4.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 244,593 shares of company stock valued at $9,003,278. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently modified their holdings of the company. Atlantic Union Bankshares Corp bought a new position in Applied Digital during the 2nd quarter valued at approximately $25,000. Noble Wealth Management PBC bought a new stake in Applied Digital during the fourth quarter worth about $25,000. Albion Financial Group UT bought a new position in Applied Digital during the 4th quarter valued at approximately $25,000. Activest Wealth Management purchased a new position in shares of Applied Digital in the 4th quarter worth about $25,000. Finally, Ameriflex Group Inc. purchased a new stake in shares of Applied Digital during the fourth quarter valued at approximately $25,000. 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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