Applied Digital (NASDAQ:APLD) Stock Price Down 7.4% - Should You Sell?

Key Points

• Applied Digital shares fell 7.4% on Monday, trading as low as $28.49 and closing at $28.84, below the prior close of $31.15. Trading volume was also lighter than usual at 15.1 million shares, down 39% from average.
• Despite the drop, analyst sentiment remains mostly positive: the stock has an average “Moderate Buy” rating and a mean price target of $70.56. Recent firm actions included price target hikes and reiterated buy ratings from Compass Point, Roth Capital, Craig Hallum, and Citigroup.
• The article also notes recent insider selling and active institutional interest. Insiders sold 35,000 shares over the last three months, while institutional investors hold 65.67% of the company’s stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price traded down 7.4% during trading on Monday . The company traded as low as $28.49 and last traded at $28.84. 15,096,910 shares were traded during trading, a decline of 39% from the average session volume of 24,748,918 shares. The stock had previously closed at $31.15.

Analyst Upgrades and Downgrades

APLD has been the topic of several research analyst reports. Compass Point reaffirmed a "buy" rating and issued a $70.00 price objective on shares of Applied Digital in a research note on Friday, May 22nd. Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Roth Capital reissued a "buy" rating and issued a $65.00 target price on shares of Applied Digital in a report on Thursday, April 23rd. Craig Hallum raised their price target on shares of Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Applied Digital in a report on Tuesday, June 9th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $70.56.

Applied Digital Price Performance

The business has a 50-day moving average of $41.61 and a two-hundred day moving average of $34.39. 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 has a market cap of $8.24 billion, a P/E ratio of -38.97 and a beta of 5.67.

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,500 shares of the business's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the sale, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the company'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 value of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. This represents a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 35,000 shares of company stock worth $1,182,175 over the last three months. Insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently modified their holdings of the business. Cannon Capital Management Inc. acquired a new stake in Applied Digital in the fourth quarter valued at $3,635,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Applied Digital during the 4th quarter worth about $2,674,000. Azora Capital LP bought a new stake in shares of Applied Digital in the 3rd quarter valued at about $3,000,000. Prime Capital Investment Advisors LLC bought a new stake in shares of Applied Digital in the 4th quarter valued at about $1,284,000. Finally, M&T Bank Corp acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $2,232,000. 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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