Applied Digital (NASDAQ:APLD) Stock Price Down 2.5% - Here's What Happened

Key Points

• Applied Digital shares fell 2.5% on Friday, trading between $24.03 and $25.79 after closing at $26.44 the previous day. Volume was slightly below average at about 23.5 million shares.
• Despite the drop, Wall Street analysts remain broadly bullish on the stock, with multiple firms reiterating buy ratings and the consensus target price around $70.56.
• Insider selling has continued, with directors Richard N. Nottenburg and Douglas S. Miller recently selling shares, while institutions still hold a large stake in the company at 65.67%.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price dropped 2.5% on Friday . The company traded as low as $24.03 and last traded at $25.79. Approximately 23,494,531 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 24,605,094 shares. The stock had previously closed at $26.44.

Wall Street Analysts Forecast Growth

APLD has been the subject of several recent analyst reports. Roth Capital restated a "buy" rating and set a $65.00 target price on shares of Applied Digital in a research report on Thursday, April 23rd. B. Riley Financial reiterated a "buy" rating and issued a $66.00 price target (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Wall Street Zen lowered Applied Digital from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Zacks Research cut Applied Digital from a "hold" rating to a "strong sell" rating in a report on Monday, June 8th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research report on Friday, April 24th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $70.56.

Applied Digital Stock Performance

The company has a market capitalization of $7.37 billion, a PE ratio of -34.85 and a beta of 5.67. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The firm's 50-day simple moving average is $40.67 and its 200-day simple moving average is $34.46.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This 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 is available through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director owned 184,859 shares in the company, valued at $6,466,367.82. The trade was a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 35,000 shares of company stock valued at $1,182,175 in the last ninety days. Insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently made changes to their positions in APLD. Handelsbanken Fonder AB increased its stake in shares of Applied Digital by 1.0% during the second quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company's stock valued at $2,671,000 after buying an additional 700 shares during the period. Whitaker Myers Wealth Managers LTD. bought a new position in Applied Digital during the 2nd quarter worth about $1,841,000. Hennion & Walsh Asset Management Inc. grew its holdings in Applied Digital by 102.3% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 41,787 shares of the company's stock worth $1,559,000 after acquiring an additional 21,130 shares in the last quarter. TrueWealth Advisors LLC bought a new position in Applied Digital during the 2nd quarter worth about $381,000. Finally, FNY Investment Advisers LLC purchased a new position in Applied Digital during the 2nd quarter valued at about $37,000. 65.67% of the stock is currently 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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