Applied Digital (NASDAQ:APLD) Stock Price Down 1.5% - Should You Sell?

Key Points

• Shares of Applied Digital fell 1.5% to $28.65 on Thursday with mid-day volume of ~15.8M shares (about 53% below average); the company has a market cap of $8.01B and a high beta of 7.25.
• Analysts hold a consensus Buy rating with an average target of $37 and price objectives as high as $53 (two Strong Buy, twelve Buy, one Sell).
• Significant insider selling has occurred recently: the CEO sold 165,000 shares at ~$36.42 and a director sold 45,987 shares at ~$38.57, totaling 244,593 shares (~$9M) over the last 90 days; insiders now own 9.5%.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 1.5% during trading on Thursday . The stock traded as low as $28.25 and last traded at $28.65. Approximately 15,822,272 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 33,598,875 shares. The stock had previously closed at $29.08.

Analyst Ratings Changes

A number of brokerages have issued reports on APLD. Citigroup reaffirmed an "outperform" rating on shares of Applied Digital in a research report on Wednesday, January 28th. Texas Capital upgraded Applied Digital to a "strong-buy" rating in a research note on Tuesday, January 20th. Needham & Company LLC reaffirmed a "buy" rating and issued a $41.00 target price on shares of Applied Digital in a report on Thursday, January 8th. Freedom Capital upgraded Applied Digital to a "strong-buy" rating in a report on Tuesday, January 6th. Finally, B. Riley Financial upped their price objective on Applied Digital to $53.00 and gave the company a "buy" rating in a research note on Friday, January 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $37.00.

Applied Digital Stock Down 1.5%

The firm has a market capitalization of $8.01 billion, a PE ratio of -53.06 and a beta of 7.25. The stock has a 50-day simple moving average of $32.42 and a 200-day simple moving average of $27.35. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79.

Insider Buying and Selling at Applied Digital

In other news, Director Chuck Hastings sold 45,987 shares of the firm's stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $38.57, for a total value of $1,773,718.59. Following the completion of the transaction, the director directly owned 388,372 shares of the company's stock, valued at $14,979,508.04. This trade represents a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Wes Cummins sold 165,000 shares of Applied Digital stock in a transaction on Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the completion of the transaction, the chief executive officer owned 4,176,329 shares of the company's stock, valued at approximately $152,101,902.18. This trade represents a 3.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 244,593 shares of company stock valued at $9,003,278 over the last 90 days. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in APLD. Atlantic Union Bankshares Corp bought a new stake in shares of Applied Digital during the second quarter valued at about $25,000. Noble Wealth Management PBC purchased a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Albion Financial Group UT purchased a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Activest Wealth Management bought a new stake in Applied Digital during the 4th quarter worth approximately $25,000. Finally, Ameriflex Group Inc. purchased a new stake in Applied Digital in the 4th quarter worth approximately $25,000. Institutional investors own 65.67% of the company's stock.

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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