TeraWulf (NASDAQ:WULF) Price Target Cut to $20.00 by Analysts at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein cut its TeraWulf price target from $36 to $20 but maintained an “outperform” rating; the new target implies 70.94% upside from the prior close.
• Analyst opinion is broadly positive but mixed: MarketBeat reports a “Moderate Buy” consensus and a $31.05 average target, while Zacks Research recently downgraded the stock to “strong sell.”
• Google’s credit support for TeraWulf’s roughly $19 billion Anthropic project and a Fluor construction contract advance its data-center plans, but substantial capital needs, tight liquidity and a highly leveraged balance sheet remain concerns.

TeraWulf (NASDAQ:WULF - Get Free Report) had its target price cut by stock analysts at Sanford C. Bernstein from $36.00 to $20.00 in a research report issued on Wednesday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Sanford C. Bernstein's price target points to a potential upside of 70.94% from the stock's previous close.

Several other research firms also recently commented on WULF. UBS Group started coverage on shares of TeraWulf in a research note on Wednesday, September 23rd. They issued a "buy" rating and a $24.00 price target on the stock. Cantor Fitzgerald cut their price target on TeraWulf from $37.00 to $30.00 and set an "overweight" rating on the stock in a research note on Friday, October 16th. Zacks Research downgraded shares of TeraWulf from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 13th. Wells Fargo & Company initiated coverage on TeraWulf in a research report on Thursday, September 17th. They set an "overweight" rating and a $30.00 price objective on the stock. Finally, Morgan Stanley boosted their target price on shares of TeraWulf from $62.50 to $65.00 and gave the stock an "overweight" rating in a report on Friday, October 9th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $31.05.

TeraWulf Stock Performance

Shares of NASDAQ WULF opened at $11.70 on Wednesday. The stock has a market cap of $5.84 billion, a price-to-earnings ratio of -2.68 and a beta of 4.00. The stock's 50-day moving average is $14.43 and its 200 day moving average is $17.97. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 27.25. TeraWulf has a 1-year low of $10.35 and a 1-year high of $29.84.

TeraWulf (NASDAQ:WULF - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported ($1.94) EPS for the quarter, missing analysts' consensus estimates of ($0.24) by ($1.70). The company had revenue of $44.77 million during the quarter, compared to the consensus estimate of $46.00 million. TeraWulf had a negative return on equity of 458.62% and a negative net margin of 1,179.94%. The company's revenue for the quarter was down 6.0% on a year-over-year basis. During the same period last year, the firm posted ($0.05) EPS. On average, sell-side analysts anticipate that TeraWulf will post -1.04 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Michael C. Bucella acquired 6,085 shares of TeraWulf stock in a transaction on Tuesday, September 15th. The stock was purchased at an average cost of $14.79 per share, with a total value of $89,997.15. Following the purchase, the director directly owned 350,789 shares in the company, valued at approximately $5,188,169.31. The trade was a 1.77% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Paul B. Prager sold 137,500 shares of the business's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $17.06, for a total transaction of $2,345,750.00. Following the completion of the transaction, the chief executive officer directly owned 3,807,552 shares in the company, valued at $64,956,837.12. This represents a 3.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have purchased 11,968 shares of company stock worth $189,962 in the last ninety days. 15.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On TeraWulf

Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of TeraWulf in the 2nd quarter valued at $577,805,000. Bank of America Corp DE bought a new position in shares of TeraWulf during the 2nd quarter worth approximately $140,057,000. Jennison Associates LLC acquired a new stake in shares of TeraWulf in the 1st quarter valued at $53,418,000. Engle Capital Management L.P. boosted its stake in shares of TeraWulf by 574.3% in the 1st quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company's stock valued at $42,570,000 after purchasing an additional 2,512,600 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of TeraWulf in the 2nd quarter worth about $61,962,000. 62.49% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting TeraWulf

Here are the key news stories impacting TeraWulf this week:

• Positive Sentiment: Google agreed to provide credit support for TeraWulf’s roughly $19 billion Anthropic lease at its Justified campus in Hawesville, Kentucky. The backstop could improve access to project financing and reduce the risk lenders associate with relying on TeraWulf’s balance sheet alone. Reuters: TeraWulf gets credit backstop from Google
• Positive Sentiment: TeraWulf also signed a definitive engineering, procurement and construction agreement with Fluor for its Kentucky data-center campus. The contract advances the project toward construction, with the company saying it will support delivery of the contracted AI infrastructure. Fluor signs EPC contract with TeraWulf
• Neutral Sentiment: Rosenblatt highlighted TeraWulf as permitted power capacity gains value, while a recent KBW price-target cut still left substantial potential upside in the analyst’s view. These views offer some support but do not remove project risks. Rosenblatt picks TeraWulf
• Negative Sentiment: Shares moved lower amid a broader selloff in AI data-center stocks, suggesting the favorable Google news was not enough to overcome sector pressure. The company still faces substantial capital needs and a multiyear construction timeline; its highly leveraged balance sheet and tight liquidity add to investor concern. TeraWulf falls despite Google backstop

TeraWulf Company Profile

TeraWulf Inc is a digital asset infrastructure company focused primarily on developing and operating environmentally conscious data centers for bitcoin mining and other high-performance computing applications. The company emphasizes the use of low-carbon energy, including nuclear and hydroelectric power, to support energy-intensive computing operations.

TeraWulf operates mining and data center facilities in the United States, including the Lake Mariner site in New York and the Nautilus Cryptomine facility in Pennsylvania.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.