TeraWulf (NASDAQ:WULF) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded TeraWulf from “hold” to “strong sell,” despite the broader analyst consensus remaining “Moderate Buy” with an average price target of $32.86.
• TeraWulf opened at $11.54, well below its 52-week high of $29.84. The company also reported a quarterly EPS loss of $1.94, significantly missing the $0.24 consensus estimate, while revenue fell 6% year over year to $44.77 million.
• Insiders recently sold shares, including the CEO’s 137,500-share sale and a director’s 130,626-share sale. Institutional investors own 62.49% of the stock, while insiders hold 15.90%.

TeraWulf (NASDAQ:WULF - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

WULF has been the subject of a number of other research reports. Freedom Capital raised shares of TeraWulf to a "strong-buy" rating in a report on Tuesday, September 8th. Bank of America assumed coverage on shares of TeraWulf in a report on Monday, June 15th. They set a "buy" rating and a $34.00 price objective on the stock. Cantor Fitzgerald reissued an "overweight" rating and set a $37.00 price objective on shares of TeraWulf in a report on Wednesday, July 15th. HC Wainwright restated a "buy" rating on shares of TeraWulf in a research note on Friday, August 21st. Finally, UBS Group assumed coverage on TeraWulf in a research report on Wednesday, September 23rd. They set a "buy" rating and a $24.00 price target for the company. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $32.86.

TeraWulf Price Performance

Shares of WULF stock opened at $11.54 on Tuesday. TeraWulf has a fifty-two week low of $10.47 and a fifty-two week high of $29.84. The firm has a market capitalization of $5.76 billion, a price-to-earnings ratio of -2.64 and a beta of 3.80. The company has a debt-to-equity ratio of 27.25, a quick ratio of 0.75 and a current ratio of 0.75. The stock's 50-day simple moving average is $15.76 and its 200-day simple moving average is $19.65.

TeraWulf (NASDAQ:WULF - Get Free Report) 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). The company had revenue of $44.77 million for the quarter, compared to analyst estimates of $46.00 million. TeraWulf had a negative net margin of 1,179.94% and a negative return on equity of 458.62%. The business's revenue was down 6.0% compared to the same quarter last year. During the same quarter last year, the company earned ($0.05) EPS. As a group, equities analysts forecast that TeraWulf will post -1.00 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Walter E. Carter sold 130,626 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $15.14, for a total value of $1,977,677.64. Following the sale, the director directly owned 229,090 shares of the company's stock, valued at $3,468,422.60. This represents a 36.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Paul B. Prager sold 137,500 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $17.06, for a total transaction of $2,345,750.00. Following the completion of the sale, the chief executive officer owned 3,807,552 shares in the company, valued at $64,956,837.12. The trade was a 3.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders acquired 11,968 shares of company stock valued at $189,962. 15.90% of the stock is owned by insiders.

Institutional Investors Weigh In On TeraWulf

Several hedge funds have recently added to or reduced their stakes in the business. Edge Wealth Management LLC lifted its holdings in TeraWulf by 90.9% during the third quarter. Edge Wealth Management LLC now owns 31,500 shares of the company's stock valued at $469,000 after purchasing an additional 15,000 shares in the last quarter. Hardin Capital Partners LLC grew its position in shares of TeraWulf by 57.1% in the third quarter. Hardin Capital Partners LLC now owns 22,000 shares of the company's stock valued at $326,000 after purchasing an additional 8,000 shares during the period. GAMMA Investing LLC increased its stake in shares of TeraWulf by 75.4% during the third quarter. GAMMA Investing LLC now owns 5,942 shares of the company's stock worth $88,000 after purchasing an additional 2,555 shares in the last quarter. Rosenberg Matthew Hamilton raised its position in shares of TeraWulf by 1,795.4% during the 3rd quarter. Rosenberg Matthew Hamilton now owns 5,383 shares of the company's stock worth $80,000 after purchasing an additional 5,099 shares during the last quarter. Finally, Polaris Financial Partners purchased a new position in TeraWulf in the 3rd quarter valued at about $128,000. 62.49% of the stock is owned by hedge funds and other institutional investors.

About TeraWulf

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.

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