Bitfarms (NASDAQ:BITF) Shares Down 18.4% - Here's What Happened

Key Points

• Bitfarms Ltd. shares fell by 18.4%, reaching a low of $5.21, amidst unusually high trading volume of approximately 208 million shares.
• Analysts have a consensus rating of "Moderate Buy" for Bitfarms, with a target price averaging $4.35, despite some upgrades and downgrades from various firms.
• The company reported a loss of $0.02 EPS for the last quarter, missing estimates, with revenue also falling short at $77.80 million compared to $79.78 million expected.

Shares of Bitfarms Ltd. (NASDAQ:BITF - Get Free Report) dropped 18.4% during mid-day trading on Thursday . The stock traded as low as $5.21 and last traded at $5.28. Approximately 208,352,178 shares traded hands during trading, an increase of 430% from the average daily volume of 39,337,340 shares. The stock had previously closed at $6.47.

Analyst Ratings Changes

BITF has been the subject of several recent analyst reports. Northland Securities set a $7.00 target price on Bitfarms in a research note on Monday. Wall Street Zen upgraded Bitfarms from a "sell" rating to a "hold" rating in a research report on Saturday, September 13th. Macquarie restated an "outperform" rating on shares of Bitfarms in a research report on Monday. Jones Trading started coverage on Bitfarms in a research report on Monday, July 21st. They set a "buy" rating and a $2.00 price target for the company. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Bitfarms in a research report on Wednesday, October 8th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Bitfarms has a consensus rating of "Moderate Buy" and an average price target of $4.35.

Bitfarms Price Performance

The stock has a 50-day moving average price of $2.34 and a 200 day moving average price of $1.45. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.11 and a quick ratio of 3.03. The firm has a market cap of $2.97 billion, a price-to-earnings ratio of -31.06 and a beta of 3.73.

Bitfarms (NASDAQ:BITF - Get Free Report) last posted its earnings results on Tuesday, August 12th. The company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.01). The firm had revenue of $77.80 million for the quarter, compared to analyst estimates of $79.78 million. Bitfarms had a negative return on equity of 9.86% and a negative net margin of 35.09%. As a group, equities research analysts forecast that Bitfarms Ltd. will post -0.21 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Bitfarms

Several institutional investors have recently added to or reduced their stakes in the stock. Cetera Investment Advisers increased its position in Bitfarms by 1.4% in the 2nd quarter. Cetera Investment Advisers now owns 789,700 shares of the company's stock valued at $664,000 after acquiring an additional 10,622 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Bitfarms by 11.2% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 133,260 shares of the company's stock valued at $105,000 after acquiring an additional 13,378 shares during the period. Legal & General Group Plc increased its position in Bitfarms by 4.1% in the 2nd quarter. Legal & General Group Plc now owns 370,869 shares of the company's stock valued at $309,000 after acquiring an additional 14,513 shares during the period. TD Asset Management Inc increased its position in Bitfarms by 5.0% in the 1st quarter. TD Asset Management Inc now owns 400,532 shares of the company's stock valued at $314,000 after acquiring an additional 19,089 shares during the period. Finally, Mackenzie Financial Corp increased its position in Bitfarms by 13.0% in the 1st quarter. Mackenzie Financial Corp now owns 184,030 shares of the company's stock valued at $145,000 after acquiring an additional 21,238 shares during the period. Institutional investors and hedge funds own 20.59% of the company's stock.

Bitfarms Company Profile

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada.

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