Bit Digital (NASDAQ:BTBT) Shares Gap Up - Here's Why

Key Points

• Bit Digital shares gapped up premarket, opening at $1.64 versus a prior close of $1.55 and last trading at $1.6850 on a volume of about 3.67 million shares.
• Analyst sentiment is mixed — two Buy and two Sell ratings leave a MarketBeat consensus of Hold with an average target of $5.67 (individual targets range up to $7.00 and include recent downgrades).
• Recent results show weakness: Q1 EPS of ($0.04) missed estimates despite revenue of $32.34M, the company has a negative net margin (70.7%) and analysts forecast -0.12 EPS for the fiscal year, with a high beta (4.02) indicating volatility.

Shares of Bit Digital, Inc. (NASDAQ:BTBT - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $1.55, but opened at $1.64. Bit Digital shares last traded at $1.6850, with a volume of 3,670,495 shares traded.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Zacks Research cut shares of Bit Digital from a "hold" rating to a "strong sell" rating in a research report on Monday, April 6th. B. Riley Financial cut their target price on Bit Digital from $6.00 to $5.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Wall Street Zen lowered Bit Digital from a "hold" rating to a "sell" rating in a research note on Saturday, March 7th. HC Wainwright reaffirmed a "buy" rating and issued a $7.00 target price on shares of Bit Digital in a research note on Thursday, April 2nd. Finally, Weiss Ratings lowered Bit Digital from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, March 30th. Two research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Bit Digital currently has a consensus rating of "Hold" and an average target price of $5.67.

Bit Digital Stock Performance

The stock has a market cap of $540.49 million, a PE ratio of -3.01 and a beta of 4.02. The company has a debt-to-equity ratio of 0.13, a current ratio of 6.39 and a quick ratio of 6.39. The business has a 50 day moving average price of $1.58 and a two-hundred day moving average price of $2.25.

Bit Digital (NASDAQ:BTBT - Get Free Report) last released its quarterly earnings data on Friday, March 27th. The company reported ($0.04) earnings per share for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.02). The company had revenue of $32.34 million for the quarter, compared to analysts' expectations of $31.87 million. Bit Digital had a negative net margin of 70.70% and a negative return on equity of 5.39%. As a group, equities research analysts forecast that Bit Digital, Inc. will post -0.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Bit Digital

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. American Century Companies Inc. raised its holdings in shares of Bit Digital by 2.4% during the second quarter. American Century Companies Inc. now owns 183,463 shares of the company's stock valued at $402,000 after acquiring an additional 4,374 shares in the last quarter. Legal & General Group Plc raised its holdings in Bit Digital by 60.2% in the second quarter. Legal & General Group Plc now owns 16,508 shares of the company's stock worth $36,000 after purchasing an additional 6,206 shares in the last quarter. Ameritas Investment Partners Inc. raised its holdings in Bit Digital by 43.5% in the third quarter. Ameritas Investment Partners Inc. now owns 26,584 shares of the company's stock worth $80,000 after purchasing an additional 8,060 shares in the last quarter. Mackenzie Financial Corp raised its holdings in Bit Digital by 75.4% in the fourth quarter. Mackenzie Financial Corp now owns 20,073 shares of the company's stock worth $39,000 after purchasing an additional 8,630 shares in the last quarter. Finally, Principal Financial Group Inc. raised its holdings in Bit Digital by 78.9% in the third quarter. Principal Financial Group Inc. now owns 22,227 shares of the company's stock worth $67,000 after purchasing an additional 9,803 shares in the last quarter. Institutional investors own 47.70% of the company's stock.

About Bit Digital

Bit Digital, Inc NASDAQ: BTBT is a publicly traded digital asset mining company that specializes in the proof-of-work mining of Bitcoin. Incorporated in Nevada and headquartered in New York City, Bit Digital develops, owns and manages a fleet of high-efficiency ASIC miners, with the primary aim of generating newly minted Bitcoin through computational work. The company's revenue is derived solely from its mining operations and any resulting cryptocurrency holdings.

To support its mining activities, Bit Digital maintains multiple data center facilities across North America.

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