Cipher Mining (NASDAQ:CIFR) Stock Jumps 10.2% After Strong Earnings

Cipher Mining Inc. (NASDAQ:CIFR)’s share price shot up 10.2% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $7.74 and last traded at $7.5580. Approximately 7,112,599 shares changed hands during trading, a decline of 77% from the average daily volume of 31,083,566 shares. The stock had previously closed at $6.86.

The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.25) by $0.03. Cipher Mining had a negative return on equity of 156.28% and a negative net margin of 585.75%. The company had revenue of $26.70 million for the quarter, compared to analyst estimates of $39.31 million. The firm’s revenue was down 62.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.10 earnings per share.

Cipher Mining News Summary

Here are the key news stories impacting Cipher Mining this week:

• Positive Sentiment: Rosenblatt Securities maintained a Buy rating while lowering its price target to $19 from $30. The revised target still implies substantial upside from recent levels. Rosenblatt Securities recommendations
• Positive Sentiment: Cantor Fitzgerald retained an Overweight rating and reduced its target to $15 from $19, indicating that analysts continue to see long-term value despite near-term execution risks. Cantor Fitzgerald recommendations
• Positive Sentiment: Cipher Mining’s quarterly loss of $0.22 per share was narrower than the consensus loss estimate, helped in part by non-operating items. Cipher Mining Q3 earnings
• Neutral Sentiment: Keefe Bruyette cut its price target dramatically to $11 from $28, while H.C. Wainwright characterized the selloff as an attractive entry point. The divergent views highlight both the stock’s valuation potential and elevated risk. Keefe Bruyette price target
• Negative Sentiment: Third-quarter revenue was $26.7 million, well below the $39.3 million consensus estimate and down 62.8% year over year. Bitcoin-mining revenue fell 71%, while initial HPC rent of $5.9 million replaced only a portion of the lost revenue. Cipher Mining Q3 revenue results
• Negative Sentiment: Borrowings of approximately $5.6 billion produced $59 million in quarterly interest expense, increasing pressure on profitability before the HPC data halls reach full utilization. Management also pushed back on describing the company as a “neocloud,” adding uncertainty around its AI-hosting strategy. Cipher Mining earnings reaction

Analyst Ratings Changes

Several analysts recently commented on the stock. Rosenblatt Securities reduced their price target on shares of Cipher Mining from $30.00 to $19.00 and set a “buy” rating for the company in a research report on Tuesday. Freedom Capital upgraded shares of Cipher Mining to a “hold” rating in a research note on Friday, September 18th. UBS Group reissued an “overweight” rating and set a $18.00 price objective on shares of Cipher Mining in a research report on Tuesday. Rothschild & Co Redburn assumed coverage on shares of Cipher Mining in a research note on Monday, September 21st. They issued a “neutral” rating and a $18.00 price objective on the stock. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Cipher Mining in a report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.88.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP raised its stake in shares of Cipher Mining by 567.1% during the second quarter. Wellington Management Group LLP now owns 3,985,806 shares of the company’s stock worth $97,652,000 after purchasing an additional 3,388,359 shares during the last quarter. Janus Henderson Group PLC grew its position in Cipher Mining by 1.9% in the 1st quarter. Janus Henderson Group PLC now owns 4,373,982 shares of the company’s stock valued at $56,292,000 after buying an additional 81,192 shares during the last quarter. Moore Capital Management LP purchased a new position in Cipher Mining in the 2nd quarter valued at $35,077,000. Jennison Associates LLC increased its stake in Cipher Mining by 48.7% in the 1st quarter. Jennison Associates LLC now owns 2,519,281 shares of the company’s stock valued at $32,423,000 after buying an additional 824,618 shares during the period. Finally, Renaissance Technologies LLC acquired a new position in Cipher Mining in the 1st quarter valued at $24,486,000. 12.26% of the stock is currently owned by hedge funds and other institutional investors.

Cipher Mining Stock Up 11.2%

The company has a market capitalization of $3.17 billion, a price-to-earnings ratio of -2.67 and a beta of 3.20. The company has a current ratio of 3.00, a quick ratio of 3.00 and a debt-to-equity ratio of 9.69. The firm’s 50 day simple moving average is $13.99 and its 200-day simple moving average is $17.70.

Cipher Mining Company Profile

Cipher Mining Inc (NASDAQ: CIFR) is a bitcoin mining company that develops and operates large-scale data center infrastructure in the United States. The company uses specialized application-specific integrated circuit (ASIC) computers to validate transactions on the Bitcoin network and earn bitcoin rewards.

Cipher focuses on securing access to cost-effective power, building and managing mining facilities, and deploying high-performance computing equipment. Its operations are supported by power infrastructure, cooling systems, networking equipment and other data center technologies required for energy-intensive digital asset mining.

The company was formed through the combination of Cipher Mining Technologies Inc and Good Works Acquisition Corp.