Bitfarms (NASDAQ:BITF) Shares Down 9.8% - Should You Sell?

Key Points

• Bitfarms Ltd. shares fell by 9.8% on Tuesday, trading between $4.37 and $4.49 after closing at $4.98, with trading volume significantly increasing by 170%.
• Recent analyst ratings show a mixed outlook, with a consensus rating of "Moderate Buy" and a target price of $4.35, while some firms have issued "buy," "hold," and "sell" ratings.
• The company reported a loss of $0.02 EPS for the last quarter, missing analyst expectations, and analysts anticipate a full-year EPS of -0.21.

Bitfarms Ltd. (NASDAQ:BITF - Get Free Report) fell 9.8% during mid-day trading on Tuesday . The company traded as low as $4.37 and last traded at $4.49. 110,296,573 shares changed hands during trading, an increase of 170% from the average session volume of 40,827,820 shares. The stock had previously closed at $4.98.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. Jones Trading initiated coverage on Bitfarms in a report on Monday, July 21st. They issued a "buy" rating and a $2.00 price objective for the company. Macquarie reissued an "outperform" rating on shares of Bitfarms in a report on Monday, October 13th. Wall Street Zen upgraded shares of Bitfarms from a "sell" rating to a "hold" rating in a research report on Saturday, September 13th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Bitfarms in a report on Wednesday, October 8th. Finally, Compass Point initiated coverage on shares of Bitfarms in a research report on Monday, September 15th. They issued a "buy" rating on the stock. Six equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $4.35.

Bitfarms Stock Performance

The firm's 50 day simple moving average is $2.57 and its 200-day simple moving average is $1.55. The company has a market capitalization of $2.52 billion, a price-to-earnings ratio of -26.41 and a beta of 3.73. The company has a debt-to-equity ratio of 0.11, a quick ratio of 3.03 and a current ratio of 3.11.

Bitfarms (NASDAQ:BITF - Get Free Report) last issued its earnings results on Tuesday, August 12th. The company reported ($0.02) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.01). The business had revenue of $77.80 million during 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%. Analysts expect that Bitfarms Ltd. will post -0.21 EPS for the current year.

Institutional Trading of Bitfarms

A number of hedge funds have recently made changes to their positions in the stock. Arkadios Wealth Advisors purchased a new position in Bitfarms during the first quarter valued at approximately $39,000. WINTON GROUP Ltd acquired a new stake in shares of Bitfarms during the 2nd quarter valued at $43,000. Theory Financial LLC purchased a new position in shares of Bitfarms during the 1st quarter valued at $48,000. Baker Avenue Asset Management LP acquired a new position in shares of Bitfarms in the second quarter worth $50,000. Finally, Blue Rock Wealth Management LLC purchased a new stake in shares of Bitfarms during the first quarter worth $59,000. 20.59% of the stock is owned by hedge funds and other institutional investors.

About Bitfarms

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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