Applied Digital (NASDAQ:APLD) Stock Price Down 2.3% - Here's Why

Key Points

• Shares fell 2.3% to $36.60 (intraday low $35.13) with roughly 23.8 million shares traded, about 39% below the stock's average daily volume.
• Analysts maintain a consensus "Buy" rating—most recent price targets range as high as $53–$58—but the average MarketBeat price target is $34.73, below the current share price.
• Significant insider selling occurred recently: CEO Wes Cummins sold 165,000 shares and a director sold 45,987 shares, with insiders offloading 244,593 shares (~$9.0M) in the last quarter, leaving insiders with 9.5% ownership.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) dropped 2.3% on Wednesday . The company traded as low as $35.13 and last traded at $36.60. Approximately 23,751,292 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 38,685,375 shares. The stock had previously closed at $37.47.

Analyst Upgrades and Downgrades

APLD has been the topic of a number of research reports. Arete Research initiated coverage on shares of Applied Digital in a report on Wednesday, January 7th. They issued a "buy" rating on the stock. Northland Securities set a $56.00 price objective on shares of Applied Digital in a research report on Wednesday, January 28th. Lake Street Capital restated a "buy" rating and issued a $45.00 price objective on shares of Applied Digital in a research note on Tuesday, December 30th. Roth Mkm lifted their target price on Applied Digital to $58.00 and gave the company a "buy" rating in a research report on Thursday, January 8th. Finally, B. Riley Financial boosted their price target on Applied Digital to $53.00 and gave the company a "buy" rating in a report on Friday, January 9th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $34.73.

Applied Digital Stock Performance

The business's fifty day simple moving average is $31.55 and its 200-day simple moving average is $25.92. 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 firm has a market capitalization of $10.23 billion, a PE ratio of -67.78 and a beta of 7.25.

Insider Activity at Applied Digital

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Noble Wealth Management PBC purchased a new stake in Applied Digital during the fourth quarter valued at $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Activest Wealth Management purchased a new stake in Applied Digital in the fourth quarter worth $25,000. Larson Financial Group LLC lifted 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 valued at $26,000 after buying an additional 1,129 shares in the last quarter. Finally, Dagco Inc. purchased a new stake in shares of Applied Digital in the third quarter valued at approximately $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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