Applied Digital (NASDAQ:APLD) Stock Price Down 5% - Time to Sell?

Key Points

• Applied Digital shares fell 5% to $27.21, well below their 50-day and 200-day moving averages of roughly $33, amid notably high trading volume.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $68.15, although ratings range from “Strong Buy” to “Strong Sell.”
• The company’s revenue surged 406% year over year to $240.35 million, but it missed the quarterly EPS estimate by $0.30, reported a negative net margin, and an insider sold 75,000 shares at an average price of $31.15.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was down 5% during trading on Friday . The stock traded as low as $26.93 and last traded at $27.21. Approximately 17,218,903 shares traded hands during trading, a decline of 28% from the average session volume of 23,773,506 shares. The stock had previously closed at $28.65.

Wall Street Analysts Forecast Growth

APLD has been the subject of several recent analyst reports. Morgan Stanley upped their target price on Applied Digital from $36.50 to $37.50 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Wall Street Zen lowered Applied Digital from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Craig Hallum boosted their price objective on Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research note on Tuesday, July 21st. Finally, Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Trading Down 5.0%

The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The stock has a market capitalization of $7.93 billion, a PE ratio of -30.57 and a beta of 5.75. The stock's 50 day simple moving average is $33.09 and its two-hundred day simple moving average is $33.62.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.30). The company had revenue of $240.35 million for the quarter, compared to analysts' expectations of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The company's revenue for the quarter was up 406.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.24) EPS. On average, sell-side analysts expect that Applied Digital Corporation will post -1.09 EPS for the current year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares of the company's stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Activest Wealth Management purchased a new stake in Applied Digital in the 4th quarter worth about $25,000. Ameriflex Group Inc. purchased a new stake in Applied Digital during the fourth quarter valued at about $25,000. McMillan Office Inc. bought a new position in Applied Digital during the fourth quarter worth about $25,000. Larson Financial Group LLC boosted its position in Applied Digital by 56,450.0% during the third 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, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Applied Digital in the second quarter worth about $26,000. Hedge funds and other 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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