Applied Digital (NASDAQ:APLD) Trading Down 1.3% - Here's Why

Key Points

• Applied Digital shares fell 1.3% on Tuesday, trading between $27.66 and $28.47 after closing at $28.84. Trading volume was about 17.1 million shares, below the recent average.
• Analyst sentiment remains mixed but generally positive, with an average rating of “Moderate Buy” and an average price target of $70.56. Recent target hikes from firms like Lake Street Capital and Needham underscore continued bullish expectations.
• Insider selling has been notable, with directors Richard N. Nottenburg and Douglas S. Miller selling shares in recent weeks. In the last three months, insiders sold 35,000 shares worth about $1.18 million.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price traded down 1.3% during mid-day trading on Tuesday . The stock traded as low as $27.66 and last traded at $28.47. Approximately 17,129,791 shares changed hands during trading, a decline of 31% from the average session volume of 24,673,031 shares. The stock had previously closed at $28.84.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Digital in a research report on Friday, April 24th. Citigroup reissued a "market outperform" rating on shares of Applied Digital in a report on Tuesday, June 9th. Lake Street Capital boosted their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Northland Securities set a $82.00 target price on shares of Applied Digital and gave the company an "outperform" rating in a report on Wednesday, June 17th. Finally, Needham & Company LLC increased their target price on shares of Applied Digital from $66.00 to $83.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat, Applied Digital presently has an average rating of "Moderate Buy" and an average target price of $70.56.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The company has a market capitalization of $8.14 billion, a PE ratio of -38.47 and a beta of 5.67. The company's 50-day simple moving average is $41.50 and its 200-day simple moving average is $34.40.

Insider Transactions at Applied Digital

In other Applied Digital 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 transaction of $432,375.00. Following the completion of the sale, the director directly owned 208,378 shares of the company's stock, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital 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 owned 184,859 shares in the company, valued at $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 35,000 shares of company stock worth $1,182,175. Corporate insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the company. Noble Wealth Management PBC purchased a new position in Applied Digital during the 4th quarter worth $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital in the fourth quarter valued at about $25,000. Activest Wealth Management purchased a new stake in shares of Applied Digital in the fourth quarter valued at about $25,000. Ameriflex Group Inc. acquired a new position in shares of Applied Digital during the fourth quarter worth about $25,000. Finally, McMillan Office Inc. purchased a new position in Applied Digital during the fourth quarter worth about $25,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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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