Bitfarms (NASDAQ:BITF) Shares Gap Down - Time to Sell?

Key Points

• Bitfarms Ltd. shares gapped down to $2.79 at market open, following a previous close of $2.89, with a trading volume of over 25 million shares.
• Analysts have mixed opinions on the stock; while some assign a "buy" rating with a target price of $2.00, others have upgraded it to a "hold," with an average price target of $3.95.
• For the last quarter, Bitfarms reported a negative EPS of ($0.02), missing expectations, while the company's revenue was below consensus forecasts at $77.80 million.

Bitfarms Ltd. (NASDAQ:BITF - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $2.89, but opened at $2.79. Bitfarms shares last traded at $2.87, with a volume of 25,140,636 shares.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Compass Point assumed coverage on shares of Bitfarms in a research note on Monday, September 15th. They issued a "buy" rating for the company. Wall Street Zen raised shares of Bitfarms from a "sell" rating to a "hold" rating in a research note on Saturday, September 13th. Finally, Jones Trading assumed coverage on shares of Bitfarms in a research note on Monday, July 21st. They issued a "buy" rating and a $2.00 price target for the company. Six research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Bitfarms currently has an average rating of "Buy" and a consensus target price of $3.95.

Bitfarms Trading Down 2.5%

The firm's 50-day moving average price is $1.46 and its 200-day moving average price is $1.13. The company has a quick ratio of 3.03, a current ratio of 3.11 and a debt-to-equity ratio of 0.11. The company has a market cap of $1.74 billion, a P/E ratio of -18.35 and a beta of 3.50.

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

Institutional Trading of Bitfarms

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Cetera Investment Advisers increased its holdings in Bitfarms by 1.4% during the 2nd quarter. Cetera Investment Advisers now owns 789,700 shares of the company's stock worth $664,000 after acquiring an additional 10,622 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Bitfarms by 11.2% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 133,260 shares of the company's stock worth $105,000 after acquiring an additional 13,378 shares during the period. Legal & General Group Plc increased its holdings in shares of Bitfarms by 4.1% in the 2nd quarter. Legal & General Group Plc now owns 370,869 shares of the company's stock worth $309,000 after buying an additional 14,513 shares during the last quarter. Mackenzie Financial Corp increased its holdings in shares of Bitfarms by 10.0% in the 4th quarter. Mackenzie Financial Corp now owns 162,792 shares of the company's stock worth $238,000 after buying an additional 14,865 shares during the last quarter. Finally, TD Asset Management Inc increased its holdings in shares of Bitfarms by 5.0% in the 1st quarter. TD Asset Management Inc now owns 400,532 shares of the company's stock worth $314,000 after buying an additional 19,089 shares during the last quarter. Institutional investors own 20.59% of the company's stock.

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.