Cleanspark (NASDAQ:CLSK) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded CleanSpark to “strong sell” from “hold,” despite the broader analyst consensus remaining “moderate buy” with a $23.11 target price.
• CleanSpark’s shares opened at $7.88, near their 12-month low of $7.82, after the company reported a quarterly loss of $0.89 per share and revenue of $138.01 million, both below estimates.
• Chief Operating Officer Taylor Monnig sold 25,249 shares for approximately $336,822, while institutional investors own 43.12% of the company.

Cleanspark (NASDAQ:CLSK - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Thursday, Zacks reports.

Other research analysts have also recently issued reports about the stock. Needham & Company LLC boosted their target price on shares of Cleanspark from $18.00 to $23.00 and gave the company a "buy" rating in a research note on Wednesday, July 15th. Canaccord Genuity Group initiated coverage on Cleanspark in a research report on Thursday. They set a "buy" rating and a $20.00 price target on the stock. Citigroup started coverage on Cleanspark in a research note on Wednesday, June 24th. They set an "outperform" rating for the company. Cantor Fitzgerald lowered their price objective on shares of Cleanspark from $26.00 to $19.00 and set an "overweight" rating on the stock in a research report on Friday, October 16th. Finally, Keefe, Bruyette & Woods boosted their target price on Cleanspark from $16.00 to $25.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $23.11.

Cleanspark Price Performance

NASDAQ CLSK opened at $7.88 on Thursday. The business has a fifty day simple moving average of $11.95 and a 200 day simple moving average of $13.30. The company has a debt-to-equity ratio of 2.34, a current ratio of 5.91 and a quick ratio of 5.91. Cleanspark has a 12 month low of $7.82 and a 12 month high of $20.86.

Cleanspark (NASDAQ:CLSK - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.89) earnings per share for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.42). Cleanspark had a negative net margin of 146.90% and a negative return on equity of 18.63%. The firm had revenue of $138.01 million for the quarter, compared to the consensus estimate of $142.37 million. During the same period in the previous year, the business earned $0.90 earnings per share. The firm's revenue for the quarter was down 30.5% on a year-over-year basis. As a group, equities research analysts expect that Cleanspark will post -1.40 earnings per share for the current fiscal year.

Insider Activity

In other news, COO Taylor Monnig sold 25,249 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $13.34, for a total value of $336,821.66. Following the completion of the transaction, the chief operating officer owned 236,114 shares of the company's stock, valued at approximately $3,149,760.76. This represents a 9.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders sold 33,151 shares of company stock valued at $435,473. 2.08% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. CoreCap Advisors LLC grew its stake in shares of Cleanspark by 16.8% in the second quarter. CoreCap Advisors LLC now owns 5,565 shares of the company's stock worth $81,000 after acquiring an additional 800 shares during the last quarter. CX Institutional increased its position in Cleanspark by 4.3% during the third quarter. CX Institutional now owns 19,462 shares of the company's stock valued at $251,000 after acquiring an additional 804 shares during the last quarter. KBC Group NV lifted its stake in shares of Cleanspark by 10.7% in the 1st quarter. KBC Group NV now owns 8,574 shares of the company's stock worth $73,000 after purchasing an additional 828 shares during the period. Markowski Investments bought a new position in Cleanspark in the second quarter worth approximately $25,000. Finally, NewEdge Advisors LLC raised its holdings in Cleanspark by 53.7% in the 2nd quarter. NewEdge Advisors LLC now owns 5,215 shares of the company's stock worth $76,000 after purchasing an additional 1,822 shares during the period. 43.12% of the stock is owned by hedge funds and other institutional investors.

About Cleanspark

CleanSpark, Inc is a bitcoin mining and digital infrastructure company headquartered in Henderson, Nevada. The company develops and operates data centers that use specialized computing equipment to validate transactions and secure the Bitcoin network.

CleanSpark focuses on acquiring, building and managing bitcoin mining facilities in the United States. Its operations have included sites in Georgia, Mississippi, Tennessee and Wyoming, with an emphasis on energy management, operational efficiency and access to reliable power.

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