Applied Digital (NASDAQ:APLD) Stock Price Down 6% - Here's Why

Key Points

• Applied Digital shares fell about 6% in midday trading, hitting an intraday low of $27.80 after closing at $29.89 the previous session. Trading volume was sharply below average, with about 1.99 million shares changing hands versus the 24.28 million daily average.
• Analysts remain mostly bullish despite the pullback. Recent price targets ranged from $60 to $82, and MarketBeat shows an average rating of “Moderate Buy” with an average price target of $67.15, though Zacks cut the stock to a “strong sell.”
• Insider selling and technical pressure were notable, with directors Douglas S. Miller and Richard N. Nottenburg selling shares in recent transactions. The stock is also trading below its 50-day and 200-day moving averages, while institutional ownership remains high at 65.67%.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) fell 6% during mid-day trading on Friday . The company traded as low as $27.80 and last traded at $28.1040. Approximately 1,990,010 shares were traded during trading, a decline of 92% from the average daily volume of 24,276,600 shares. The stock had previously closed at $29.89.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Citizens Jmp raised their price objective on Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a report on Thursday, May 21st. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the company an "outperform" rating in a research report on Wednesday, June 17th. Compass Point reiterated a "buy" rating and set a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Roth Capital restated a "buy" rating and issued a $65.00 price target on shares of Applied Digital in a research note on Thursday, April 23rd. Finally, Zacks Research lowered Applied Digital from a "hold" rating to a "strong sell" rating in a research note on Monday, June 8th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Applied Digital has an average rating of "Moderate Buy" and an average price target of $67.15.

Applied Digital Trading Down 5.5%

The business has a fifty day simple moving average of $39.10 and a 200-day simple moving average of $34.59. The firm has a market cap of $8.07 billion, a price-to-earnings ratio of -38.39 and a beta of 5.67. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38.

Insider Activity at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the sale, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. The trade was a 5.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Several large investors have recently modified their holdings of APLD. Vanguard Group Inc. lifted its holdings in Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock valued at $592,601,000 after buying an additional 6,445,908 shares during the period. Situational Awareness LP grew its stake in Applied Digital by 18.9% during the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock worth $319,978,000 after purchasing an additional 2,139,378 shares during the period. Geode Capital Management LLC increased its holdings in Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock worth $154,151,000 after purchasing an additional 304,228 shares in the last quarter. Value Aligned Research Advisors LLC acquired a new position in Applied Digital in the fourth quarter valued at approximately $138,380,000. Finally, BNP Paribas Financial Markets lifted its stake in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after buying an additional 5,198,223 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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