Applied Digital (NASDAQ:APLD) Trading Down 3.6% - Time to Sell?

Key Points

• Applied Digital (APLD) fell 3.6% to $27.48 (intraday low $26.55) on Thursday with ~14.8M shares traded, about 51% below its average volume; the stock sits below its 50‑day SMA ($32.83) but near its 200‑day SMA ($28.21) and has a high beta (7.20), signaling elevated volatility.
• Analysts maintain a consensus Buy rating with an average target of $37.00 (ratings include 2 Strong Buy, 12 Buy and 1 Sell, and price targets as high as $56), implying upside from current levels.
• Insiders have been selling recently: CEO Wes Cummins sold 165,000 shares at about $36.42 (~$6.0M), insiders sold ~244,593 shares (~$9.0M) in the last three months, though insiders still own 9.5% and institutions hold 65.7% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price dropped 3.6% on Thursday . The stock traded as low as $26.55 and last traded at $27.48. Approximately 14,805,747 shares were traded during trading, a decline of 51% from the average daily volume of 30,082,234 shares. The stock had previously closed at $28.52.

Analyst Ratings Changes

A number of brokerages recently issued reports on APLD. Needham & Company LLC reissued a "buy" rating and set a $41.00 price target on shares of Applied Digital in a report on Thursday, January 8th. Northland Securities set a $56.00 price objective on shares of Applied Digital in a research report on Wednesday, January 28th. Wall Street Zen raised shares of Applied Digital from a "sell" rating to a "hold" rating in a research note on Saturday, January 10th. Arete Research started coverage on Applied Digital in a research note on Wednesday, January 7th. They issued a "buy" rating for the company. Finally, Roth Mkm reaffirmed a "buy" rating on shares of Applied Digital in a report on Tuesday, February 17th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Applied Digital currently has a consensus rating of "Buy" and an average target price of $37.00.

Applied Digital Price Performance

The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The company has a market capitalization of $7.68 billion, a price-to-earnings ratio of -50.89 and a beta of 7.20. The stock's 50-day simple moving average is $32.83 and its two-hundred day simple moving average is $28.21.

Insider Activity at Applied Digital

In related news, CEO Wes Cummins sold 165,000 shares of Applied Digital stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $36.42, for a total value of $6,009,300.00. Following the sale, the chief executive officer directly owned 4,176,329 shares in the company, valued at approximately $152,101,902.18. The trade was a 3.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 12,000 shares of Applied Digital stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the completion of the sale, the director owned 233,378 shares in the company, valued at approximately $8,273,250.10. The trade was a 4.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 244,593 shares of company stock worth $9,003,278 over the last three months. Company insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently made changes to their positions in the company. Atlantic Union Bankshares Corp acquired a new position in Applied Digital in the 2nd quarter valued at $25,000. Noble Wealth Management PBC acquired a new stake in Applied Digital during the 4th quarter worth $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital during the fourth quarter worth $25,000. Activest Wealth Management acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $25,000. Finally, Ameriflex Group Inc. acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $25,000. 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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