TeraWulf (NASDAQ:WULF) Stock Falls 8.1% – What’s Next?

TeraWulf Inc. (NASDAQ:WULF) traded down 8.1% during mid-day trading on Friday. The stock traded as low as $12.15 and last traded at $11.9840. Approximately 5,412,097 shares changed hands during trading, a decline of 84% from the average session volume of 33,468,598 shares. The stock had previously closed at $13.04.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Weiss Ratings raised shares of TeraWulf from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, October 26th. TD Cowen started coverage on shares of TeraWulf in a report on Monday, October 12th. They set a “buy” rating and a $21.00 price objective on the stock. Cantor Fitzgerald cut their price objective on shares of TeraWulf from $37.00 to $30.00 and set an “overweight” rating on the stock in a research report on Friday, October 16th. Jefferies Financial Group reduced their target price on TeraWulf from $15.00 to $14.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Needham & Company LLC reduced their target price on TeraWulf from $33.00 to $25.00 and set a “buy” rating for the company in a research note on Monday. Three analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $27.18.

TeraWulf Price Performance

The stock has a market capitalization of $6.19 billion, a price-to-earnings ratio of -3.78 and a beta of 4.00. The business’s fifty day moving average price is $14.04 and its 200-day moving average price is $17.93. The company has a debt-to-equity ratio of 5.35, a current ratio of 0.97 and a quick ratio of 0.75.

TeraWulf (NASDAQ:WULF) last posted its earnings results on Friday, November 6th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.15. TeraWulf had a negative net margin of 410.92% and a positive return on equity of 87.30%. The company had revenue of $76.23 million during the quarter, compared to the consensus estimate of $62.49 million. During the same period in the previous year, the firm posted ($1.13) earnings per share. The firm’s revenue for the quarter was up 50.7% on a year-over-year basis. On average, research analysts forecast that TeraWulf Inc. will post -0.48 EPS for the current year.

Insiders Place Their Bets

In related news, Director Walter Carter sold 130,626 shares of the company’s stock in a transaction 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 sale, the director owned 229,090 shares in the company, valued at approximately $3,468,422.60. This represents a 36.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Paul Prager sold 137,500 shares of the firm’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $17.06, for a total value of $2,345,750.00. Following the transaction, the chief executive officer owned 3,807,552 shares in the company, valued at approximately $64,956,837.12. This trade represents a 3.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 15.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. First Trust Advisors LP grew its position in TeraWulf by 234.6% in the 3rd quarter. First Trust Advisors LP now owns 2,260,355 shares of the company’s stock worth $33,453,000 after purchasing an additional 1,584,798 shares in the last quarter. Intesa Sanpaolo Wealth Management bought a new position in shares of TeraWulf during the 3rd quarter worth approximately $207,000. Cornerstone Select Advisors LLC boosted its stake in shares of TeraWulf by 27.7% in the 3rd quarter. Cornerstone Select Advisors LLC now owns 17,013 shares of the company’s stock worth $252,000 after buying an additional 3,689 shares during the last quarter. Private Advisor Group LLC boosted its stake in shares of TeraWulf by 7.7% in the 3rd quarter. Private Advisor Group LLC now owns 19,754 shares of the company’s stock worth $292,000 after buying an additional 1,411 shares during the last quarter. Finally, Ieq Capital LLC grew its holdings in shares of TeraWulf by 156.6% in the third quarter. Ieq Capital LLC now owns 24,792 shares of the company’s stock valued at $367,000 after acquiring an additional 15,129 shares in the last quarter. 62.49% of the stock is currently owned by hedge funds and other institutional investors.

TeraWulf Company Profile

TeraWulf, Inc. develops and operates digital infrastructure, including facilities for Bitcoin mining and high-performance computing (HPC). The company focuses on locating its operations near sources of low-carbon energy and offers data center capacity designed for energy-intensive computing. Its Lake Mariner facility in New York is a key site for its mining and data center activities. TeraWulf has also operated in Pennsylvania through the Nautilus Cryptomine facility, reflecting its history of developing energy-intensive operations in the northeastern United States.