Applied Digital (NASDAQ:APLD) Stock Price Down 4.4% - Should You Sell?

Key Points

• Applied Digital shares fell 4.4% to $24.29, trading below both the 50-day moving average of $30.47 and the 200-day moving average of $33.24.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $68.15, although ratings range from Strong Buy to Sell.
• The company’s revenue surged 406.3% year over year to $240.35 million, but it reported an adjusted loss of $0.39 per share versus the expected loss of $0.09 and continues to have negative profitability metrics.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price traded down 4.4% on Tuesday . The company traded as low as $24.10 and last traded at $24.29. Approximately 14,910,483 shares were traded during trading, a decline of 36% from the average session volume of 23,384,377 shares. The stock had previously closed at $25.41.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on APLD shares. Compass Point restated a "buy" rating and set a $70.00 price objective on shares of Applied Digital in a report on Friday, May 22nd. Craig Hallum raised their price objective on Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Needham & Company LLC reaffirmed a "buy" rating and issued a $83.00 price objective on shares of Applied Digital in a research note on Tuesday, July 28th. Wall Street Zen downgraded shares of Applied Digital from a "sell" rating to a "strong sell" rating in a research report on Sunday. Finally, Morgan Stanley lifted their price target on shares of Applied Digital from $36.50 to $37.50 and gave the company an "equal weight" rating in a research report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $68.15.

Applied Digital Trading Down 4.4%

The firm has a fifty day moving average of $30.47 and a 200 day moving average of $33.24. The firm has a market capitalization of $7.08 billion, a PE ratio of -27.29 and a beta of 5.75. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data 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). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. During the same period last year, the business earned ($0.24) EPS. The firm's revenue was up 406.3% compared to the same quarter last year. Equities research analysts expect that Applied Digital Corporation will post -1.09 EPS for the current year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 75,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director owned 133,378 shares in the company, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 9.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds have recently bought and sold shares of APLD. HighTower Advisors LLC raised its position in shares of Applied Digital by 13.7% in the 2nd quarter. HighTower Advisors LLC now owns 37,368 shares of the company's stock valued at $1,394,000 after purchasing an additional 4,498 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Applied Digital during the second quarter worth approximately $962,000. California State Teachers Retirement System grew its position in shares of Applied Digital by 3,718.0% during the second quarter. California State Teachers Retirement System now owns 11,121,928 shares of the company's stock worth $414,848,000 after buying an additional 10,830,623 shares in the last quarter. Ameritas Advisory Services LLC bought a new stake in shares of Applied Digital in the second quarter worth $272,000. Finally, AlphaGrep UK Ltd bought a new stake in shares of Applied Digital in the second quarter worth $254,000. Institutional investors and hedge funds own 65.67% of the company's stock.

About Applied Digital

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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