TeraWulf (NASDAQ:WULF) Shares Gap Down – What’s Next?

TeraWulf Inc. (NASDAQ:WULF)’s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $13.37, but opened at $12.72. TeraWulf shares last traded at $12.77, with a volume of 5,159,249 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. TD Cowen started coverage on shares of TeraWulf in a research note on Monday. They set a “buy” rating and a $21.00 price objective on the stock. B. Riley Financial upped their target price on shares of TeraWulf from $32.00 to $40.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Cantor Fitzgerald restated an “overweight” rating and issued a $37.00 target price on shares of TeraWulf in a research note on Wednesday, July 15th. UBS Group began coverage on shares of TeraWulf in a report on Wednesday, September 23rd. They set a “buy” rating and a $24.00 price target for the company. Finally, Needham & Company LLC lifted their price target on shares of TeraWulf from $28.00 to $33.00 and gave the stock a “buy” rating in a research note on Tuesday, July 7th. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, TeraWulf currently has an average rating of “Moderate Buy” and an average target price of $32.86.

TeraWulf Price Performance

The business has a fifty day moving average of $16.00 and a 200 day moving average of $19.70. The company has a debt-to-equity ratio of 27.25, a current ratio of 0.75 and a quick ratio of 0.75. The stock has a market cap of $6.39 billion, a PE ratio of -2.92 and a beta of 3.80.

TeraWulf (NASDAQ:WULF) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($1.94) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($1.70). TeraWulf had a negative return on equity of 458.62% and a negative net margin of 1,179.94%. The business had revenue of $44.77 million for the quarter, compared to analysts’ expectations of $46.00 million. During the same quarter in the prior year, the firm earned ($0.05) earnings per share. TeraWulf’s revenue for the quarter was down 6.0% compared to the same quarter last year. Sell-side analysts anticipate that TeraWulf Inc. will post -1.00 earnings per share for the current year.

Insider Activity

In other news, Director Walter Carter sold 130,626 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $15.14, for a total transaction of $1,977,677.64. Following the completion of the transaction, the director directly owned 229,090 shares in the company, valued at approximately $3,468,422.60. This represents a 36.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael Bucella purchased 6,085 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were bought at an average cost of $14.79 per share, with a total value of $89,997.15. Following the transaction, the director directly owned 350,789 shares of the company’s stock, valued at approximately $5,188,169.31. This represents a 1.77% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 11,968 shares of company stock worth $189,962. 15.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WULF. BlackRock Inc. bought a new stake in shares of TeraWulf in the 2nd quarter worth about $577,805,000. Bank of America Corp DE lifted its position in shares of TeraWulf by 9.2% during the first quarter. Bank of America Corp DE now owns 5,777,458 shares of the company’s stock worth $83,369,000 after purchasing an additional 488,184 shares during the last quarter. Jennison Associates LLC bought a new position in shares of TeraWulf during the first quarter worth about $53,418,000. Engle Capital Management L.P. grew its stake in TeraWulf by 574.3% in the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company’s stock worth $42,570,000 after purchasing an additional 2,512,600 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in TeraWulf in the second quarter worth about $61,962,000. 62.49% of the stock is owned by institutional investors and hedge funds.

TeraWulf Company Profile

TeraWulf, Inc is a digital infrastructure company that develops and operates energy-intensive computing facilities in the United States. The company has primarily focused on bitcoin mining, using specialized application-specific integrated circuit (ASIC) hardware and power infrastructure to support cryptocurrency production.

TeraWulf emphasizes the use of low-carbon energy sources, including nuclear and hydropower, as part of its strategy to reduce the environmental impact of its operations.