Bitfarms (NASDAQ:BITF) Shares Down 9.1% - Here's Why

Key Points

• Bitfarms shares fell 9.1% to about $3.69 on Thursday, with trading volume surging to ~65.7 million shares (about 51% above the average) from a prior close of $4.06.
• Analyst coverage is mixed but leans positive: seven analysts rate the stock Buy and one Sell, resulting in an average rating of Moderate Buy and an average price target of $4.75 (individual targets roughly $2–$7).
• Company fundamentals show pressure—Bitfarms missed quarterly EPS (reported -$0.02 vs. -$0.01 expected) and revenue of $77.8M missed estimates, with negative margins and a forecasted -$0.21 EPS for the year, though liquidity is strong (current ratio ~3.11) and debt is low (debt/equity ~0.11).

Bitfarms Ltd. (NASDAQ:BITF - Get Free Report)'s share price fell 9.1% during trading on Thursday . The company traded as low as $3.67 and last traded at $3.69. 65,679,663 shares traded hands during trading, an increase of 51% from the average session volume of 43,490,766 shares. The stock had previously closed at $4.06.

Wall Street Analysts Forecast Growth

BITF has been the subject of several recent research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Bitfarms in a report on Wednesday, October 8th. Jones Trading initiated coverage on Bitfarms in a report on Monday, July 21st. They issued a "buy" rating and a $2.00 price target for the company. Northland Securities set a $7.00 price target on Bitfarms in a report on Monday, October 13th. Compass Point initiated coverage on Bitfarms in a report on Monday, September 15th. They issued a "buy" rating for the company. Finally, Wall Street Zen raised Bitfarms from a "sell" rating to a "hold" rating in a report on Saturday, September 13th. Seven research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $4.75.

Bitfarms Stock Performance

The stock has a market capitalization of $2.08 billion, a PE ratio of -21.70 and a beta of 3.77. The stock has a fifty day moving average of $3.27 and a 200-day moving average of $1.83. The company has a quick ratio of 3.03, a current ratio of 3.11 and a debt-to-equity ratio of 0.11.

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

Hedge Funds Weigh In On Bitfarms

Institutional investors have recently added to or reduced their stakes in the stock. Arkadios Wealth Advisors purchased a new stake in Bitfarms in the 1st quarter valued at approximately $39,000. WINTON GROUP Ltd purchased a new stake in shares of Bitfarms during the 2nd quarter worth approximately $43,000. Theory Financial LLC purchased a new stake in shares of Bitfarms during the 1st quarter worth approximately $48,000. Baker Avenue Asset Management LP purchased a new stake in shares of Bitfarms during the 2nd quarter worth approximately $50,000. Finally, SG Americas Securities LLC purchased a new stake in shares of Bitfarms during the 3rd quarter worth approximately $51,000. 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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