Applied Digital (NASDAQ:APLD) Shares Down 6.1% - Should You Sell?

Key Points

• Shares fell 6.1% to about $41.53 on Thursday with roughly 24.6 million shares traded, and the stock shows elevated volatility (beta 5.69) with a market cap of $11.87 billion.
• Applied Digital missed EPS in the quarter (‑$0.36 vs. consensus ‑$0.13) but reported revenue of $108.55 million—well above expectations and up 139% year‑over‑year—while remaining unprofitable (net margin ‑52.84%).
• Analysts hold a consensus rating of “Moderate Buy” with an average target of $44.33, even as insiders sold about 35,000 shares last quarter and institutional investors now own roughly 65.7% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price dropped 6.1% during trading on Thursday . The stock traded as low as $40.16 and last traded at $41.53. Approximately 24,565,235 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 26,825,023 shares. The stock had previously closed at $44.24.

Wall Street Analyst Weigh In

APLD has been the topic of several analyst reports. Roth Mkm reissued a "buy" rating and issued a $65.00 target price on shares of Applied Digital in a report on Thursday, April 23rd. Citizens Jmp reaffirmed a "market outperform" rating and issued a $40.00 target price on shares of Applied Digital in a report on Thursday, April 9th. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a research note on Wednesday, January 28th. Zacks Research cut shares of Applied Digital from a "hold" rating to a "strong sell" rating in a report on Wednesday, April 8th. Finally, B. Riley Financial raised their price target on shares of Applied Digital to $53.00 and gave the company a "buy" rating in a research report on Friday, January 9th. Two equities research 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. Based on data from MarketBeat, Applied Digital presently has a consensus rating of "Moderate Buy" and an average target price of $44.33.

Applied Digital Stock Down 6.1%

The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The company's fifty day moving average is $28.78 and its 200-day moving average is $30.08. The company has a market cap of $11.87 billion, a PE ratio of -56.12 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results 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 return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million during the quarter, compared to analysts' expectations of $78.47 million. During the same quarter in the prior year, the business posted ($0.08) EPS. The company's revenue for the quarter was up 139.3% compared to the same quarter last year. On average, analysts predict that Applied Digital Corporation will post -0.52 EPS for the current year.

Insider Buying and Selling at Applied Digital

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

Hedge Funds Weigh In On Applied Digital

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in Applied Digital by 36.4% in the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock valued at $592,601,000 after acquiring an additional 6,445,908 shares during the last quarter. Situational Awareness LP increased its holdings in Applied Digital by 87.0% in the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company's stock valued at $278,034,000 after acquiring an additional 5,274,905 shares during the last quarter. Geode Capital Management LLC increased its holdings 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 acquiring an additional 304,228 shares during the last quarter. Value Aligned Research Advisors LLC bought a new stake in Applied Digital in the 4th quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets increased 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 acquiring an additional 5,198,223 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

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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