Applied Digital (NASDAQ:APLD) Shares Down 8.9% - Should You Sell?

Key Points

• Applied Digital shares fell 8.9% on Thursday, dropping to an intraday low of $25.82 before last trading at $26.44, below the previous close of $29.03.
• Analyst opinions remain mixed, with the stock carrying a Moderate Buy consensus and an average price target of $70.56, though some firms have recently issued sell ratings while others raised targets sharply.
• Recent insider activity showed directors selling shares, and over the last 90 days insiders sold 35,000 shares total, while institutional investors still own 65.67% of the company.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price traded down 8.9% during trading on Thursday . The company traded as low as $25.82 and last traded at $26.44. 18,371,459 shares were traded during trading, a decline of 25% from the average daily volume of 24,612,820 shares. The stock had previously closed at $29.03.

Wall Street Analyst Weigh In

APLD has been the topic of several research reports. Wall Street Zen lowered Applied Digital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Citizens Jmp lifted their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a report on Thursday, May 21st. Craig Hallum boosted their target price on shares of Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th. Finally, Lucid Cap Mkts upgraded shares of Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $70.56.

Applied Digital Stock Performance

The stock has a market capitalization of $7.56 billion, a P/E ratio of -35.73 and a beta of 5.67. The company's 50-day moving average is $40.97 and its two-hundred day moving average is $34.45. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Insider Activity

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

Institutional Trading of Applied Digital

Several hedge funds have recently added to or reduced their stakes in APLD. Cannon Capital Management Inc. acquired a new position in Applied Digital during the 4th quarter valued at about $3,635,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Applied Digital in the fourth quarter valued at approximately $2,674,000. Prime Capital Investment Advisors LLC bought a new position in shares of Applied Digital in the fourth quarter valued at approximately $1,284,000. M&T Bank Corp acquired a new position in shares of Applied Digital during the fourth quarter valued at approximately $2,232,000. Finally, TFR Capital LLC. bought a new stake in Applied Digital during the fourth quarter worth approximately $1,741,000. 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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