Applied Digital (NASDAQ:APLD) Stock Price Down 4.4% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 4.4% during mid-day trading on Tuesday . The company traded as low as $24.10 and last traded at $24.29. 14,910,483 shares traded hands during mid-day trading, a decline of 36% from the average daily volume of 23,384,377 shares. The stock had previously closed at $25.41.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on APLD. Needham & Company LLC restated a “buy” rating and issued a $83.00 price objective on shares of Applied Digital in a report on Tuesday, July 28th. Compass Point reiterated a “buy” rating and set a $70.00 price target on shares of Applied Digital in a research note on Friday, May 22nd. Morgan Stanley upped their price target on Applied Digital from $36.50 to $37.50 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. Citigroup reissued a “market outperform” rating on shares of Applied Digital in a research note on Monday, August 3rd. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Applied Digital has an average rating of “Moderate Buy” and an average target price of $68.15.

Applied Digital Trading Up 3.2%

The firm has a market cap of $7.49 billion, a price-to-earnings ratio of -28.89 and a beta of 5.72. The business has a fifty day moving average of $29.71 and a two-hundred day moving average of $33.08. 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) last released its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). The business had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm’s revenue for the quarter was up 406.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.24) earnings per share. As a group, equities analysts expect that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 75,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 9.50% of the stock is owned by corporate insiders.

Institutional Trading of Applied Digital

A number of hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC boosted its stake in Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock valued at $106,000 after acquiring an additional 8,692 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Applied Digital by 239.1% in the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after buying an additional 23,457 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock valued at $37,000 after acquiring an additional 3,542 shares during the period. Strs Ohio acquired a new stake in shares of Applied Digital during the 1st quarter worth approximately $71,000. Finally, Cetera Investment Advisers lifted its holdings in shares of Applied Digital by 61.0% in the 2nd quarter. Cetera Investment Advisers now owns 61,656 shares of the company’s stock worth $621,000 after purchasing an additional 23,360 shares during the last quarter. Hedge funds and other institutional investors 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.