Applied Digital (NASDAQ:APLD) Stock Price Down 2.2% - Here's Why

Key Points

• Shares of Applied Digital fell about 2.2% to roughly $37.41 (intraday low $37.35) on Tuesday, with trading volume ~24.2M shares, down ~38% from the average daily volume.
• Wall Street sentiment is broadly positive—three analysts rate APLD a Strong Buy, twelve a Buy and one a Sell—giving an overall consensus rating of Buy and a consensus price target of $34.73.
• Company insiders have been selling recently: CEO Wes Cummins sold 165,000 shares for about $6.0M (avg $36.42) and insiders sold ~244,593 shares (~$9.0M) over the last 90 days; insiders still own about 9.5% of the stock.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 2.2% on Tuesday . The stock traded as low as $37.35 and last traded at $37.41. Approximately 24,207,908 shares changed hands during trading, a decline of 38% from the average daily volume of 39,222,086 shares. The stock had previously closed at $38.26.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Wall Street Zen raised shares of Applied Digital from a "sell" rating to a "hold" rating in a report on Saturday, January 10th. Arete Research initiated coverage on Applied Digital in a report on Wednesday, January 7th. They issued a "buy" rating on the stock. Lake Street Capital reissued a "buy" rating and set a $45.00 target price on shares of Applied Digital in a report on Tuesday, December 30th. Citigroup restated an "outperform" rating on shares of Applied Digital in a research report on Wednesday, January 28th. Finally, Craig Hallum boosted their price target on Applied Digital to $39.00 and gave the stock a "buy" rating in a research report on Thursday, October 23rd. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Applied Digital currently has an average rating of "Buy" and a consensus price target of $34.73.

Applied Digital Stock Down 2.2%

The firm has a 50-day moving average of $31.36 and a two-hundred day moving average of $25.73. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The company has a market capitalization of $10.46 billion, a PE ratio of -69.28 and a beta of 7.25.

Insiders Place Their Bets

In other news, CEO Wes Cummins sold 165,000 shares of the business's stock in a transaction that occurred 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 sale, the chief executive officer directly owned 4,176,329 shares of the company's stock, valued at approximately $152,101,902.18. The trade was a 3.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 12,000 shares of the company's stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the transaction, the director owned 233,378 shares in the company, valued at $8,273,250.10. This trade represents a 4.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 244,593 shares of company stock valued at $9,003,278 over the last 90 days. Company insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Several large investors have recently added to or reduced their stakes in APLD. Noble Wealth Management PBC acquired a new position in shares of Applied Digital in the fourth quarter worth $25,000. Albion Financial Group UT purchased a new position in Applied Digital in the fourth quarter valued at $25,000. Activest Wealth Management acquired a new position in Applied Digital during the 4th quarter worth $25,000. Larson Financial Group LLC increased its holdings in Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock worth $26,000 after purchasing an additional 1,129 shares during the period. Finally, Dagco Inc. acquired a new stake in Applied Digital in the 3rd quarter valued at about $27,000. 65.67% of the stock is owned by hedge funds and other 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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