Applied Digital (NASDAQ:APLD) Shares Down 1.2% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) shares dropped 1.2% on Thursday . The company traded as low as $30.56 and last traded at $31.53. Approximately 14,873,208 shares traded hands during trading, a decline of 59% from the average daily volume of 35,888,000 shares. The stock had previously closed at $31.91.

Analyst Ratings Changes

Several brokerages have weighed in on APLD. Freedom Capital upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 6th. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research report on Wednesday, January 28th. Craig Hallum upped their target price on Applied Digital to $39.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. B. Riley Financial increased their target price on Applied Digital to $53.00 and gave the stock a “buy” rating in a report on Friday, January 9th. Finally, Arete Research started coverage on shares of Applied Digital in a research report on Wednesday, January 7th. They set a “buy” rating for the company. Two research 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 company’s stock. According to data from MarketBeat.com, Applied Digital presently has an average rating of “Buy” and an average target price of $37.00.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The stock has a market cap of $8.82 billion, a P/E ratio of -58.39 and a beta of 7.25. The stock has a 50-day simple moving average of $31.97 and a 200-day simple moving average of $26.80.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total transaction of $425,400.00. Following the sale, the director owned 233,378 shares of the company’s stock, valued at $8,273,250.10. This trade represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Chuck Hastings sold 45,987 shares of the company’s stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $38.57, for a total value of $1,773,718.59. Following the completion of the transaction, the director directly owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. The trade was a 10.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 244,593 shares of company stock worth $9,003,278 in the last 90 days. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in shares of Applied Digital by 36.4% during the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after acquiring an additional 6,445,908 shares during the last quarter. Value Aligned Research Advisors LLC bought a new position in Applied Digital during the 4th quarter worth $138,380,000. Situational Awareness LP lifted its holdings in Applied Digital by 87.0% during the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock worth $278,034,000 after buying an additional 5,274,905 shares during the period. BNP Paribas Financial Markets grew its position in shares of Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after buying an additional 5,198,223 shares during the last quarter. Finally, Marex Group plc increased its stake in shares of Applied Digital by 38,484.6% in the fourth quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock valued at $95,745,000 after buying an additional 3,894,639 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.