Bit Digital (NASDAQ:BTBT) Trading Down 5.2% - Should You Sell?

Key Points

• Bit Digital's stock price decreased by 5.2%, trading between $2.97 and $3.03, with a significant drop in trading volume of 75% compared to the average.
• Despite the decline, HC Wainwright has reissued a "buy" rating with a price target of $7.00 for the shares, indicating potential upside.
• The company reported a negative net margin of 77.27% and revenue of $25.66 million for the last quarter, falling short of analysts' expectations.

Bit Digital, Inc. (NASDAQ:BTBT - Get Free Report)'s stock price fell 5.2% during mid-day trading on Friday . The stock traded as low as $2.97 and last traded at $3.03. 6,114,102 shares were traded during mid-day trading, a decline of 75% from the average session volume of 24,363,875 shares. The stock had previously closed at $3.19.

Analyst Upgrades and Downgrades

Separately, HC Wainwright reissued a "buy" rating and issued a $7.00 price target on shares of Bit Digital in a research report on Thursday, June 26th.

Bit Digital Stock Down 6.4%

The company has a market cap of $955.08 million, a price-to-earnings ratio of -6.35 and a beta of 4.90. The company's fifty day moving average price is $2.94 and its two-hundred day moving average price is $2.57.

Bit Digital (NASDAQ:BTBT - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The company reported ($0.03) EPS for the quarter, meeting the consensus estimate of ($0.03). Bit Digital had a negative net margin of 77.27% and a negative return on equity of 10.83%. The business had revenue of $25.66 million for the quarter, compared to analysts' expectations of $27.46 million. Research analysts forecast that Bit Digital, Inc. will post -0.2 earnings per share for the current year.

Insider Activity at Bit Digital

In related news, CEO Samir Tabar purchased 750,000 shares of the firm's stock in a transaction dated Wednesday, June 25th. The shares were acquired at an average cost of $2.00 per share, with a total value of $1,500,000.00. Following the completion of the purchase, the chief executive officer directly owned 2,108,089 shares of the company's stock, valued at $4,216,178. This trade represents a 55.22% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Brock Jeffrey Pierce acquired 500,000 shares of Bit Digital stock in a transaction on Wednesday, June 25th. The stock was acquired at an average cost of $2.00 per share, for a total transaction of $1,000,000.00. Following the completion of the purchase, the director owned 500,000 shares of the company's stock, valued at approximately $1,000,000. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. 1.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Bit Digital

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Balyasny Asset Management L.P. bought a new position in Bit Digital in the second quarter valued at approximately $10,385,000. Valiant Capital Management L.P. bought a new position in Bit Digital in the second quarter valued at approximately $8,760,000. Geode Capital Management LLC boosted its stake in Bit Digital by 24.2% in the second quarter. Geode Capital Management LLC now owns 3,585,744 shares of the company's stock valued at $7,853,000 after acquiring an additional 699,134 shares during the last quarter. Allspring Global Investments Holdings LLC bought a new position in Bit Digital in the second quarter valued at approximately $7,512,000. Finally, Vident Advisory LLC boosted its stake in Bit Digital by 56.2% in the fourth quarter. Vident Advisory LLC now owns 3,194,409 shares of the company's stock valued at $9,360,000 after acquiring an additional 1,149,727 shares during the last quarter. 47.70% of the stock is owned by institutional investors.

Bit Digital Company Profile

Bit Digital, Inc, together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications.

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