Bitfarms (NASDAQ:BITF) Stock Price Down 12.2% - Here's Why

Key Points

• Bitfarms Ltd. shares fell by 12.2% during trading, reaching as low as $3.70, with a significant trading volume increase of 273% compared to its average.
• Recent earnings reports showed Bitfarms missed analysts' expectations with a reported EPS of ($0.02) against a consensus of ($0.01).
• The company currently has a consensus rating of "Moderate Buy" with seven analysts rating it as Buy and one as Sell, reflecting mixed market sentiment.

Bitfarms Ltd. (NASDAQ:BITF - Get Free Report) shares dropped 12.2% during mid-day trading on Wednesday . The stock traded as low as $3.70 and last traded at $3.94. Approximately 154,524,939 shares changed hands during mid-day trading, an increase of 273% from the average daily volume of 41,404,559 shares. The stock had previously closed at $4.49.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Jones Trading assumed coverage on Bitfarms in a research report on Monday, July 21st. They issued a "buy" rating and a $2.00 target price for the company. Macquarie reissued an "outperform" rating on shares of Bitfarms in a research report on Monday, October 13th. Northland Securities set a $7.00 target price on Bitfarms in a research report on Monday, October 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Bitfarms in a research report on Wednesday, October 8th. Finally, Wall Street Zen raised Bitfarms from a "sell" rating to a "hold" rating in a research report on Saturday, September 13th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, Bitfarms presently has a consensus rating of "Moderate Buy" and a consensus price target of $4.35.

Bitfarms Trading Down 12.2%

The stock has a 50 day moving average of $2.63 and a 200-day moving average of $1.57. The company has a market capitalization of $2.22 billion, a P/E ratio of -23.18 and a beta of 3.73. The company has a current ratio of 3.11, a quick ratio of 3.03 and a debt-to-equity ratio of 0.11.

Bitfarms (NASDAQ:BITF - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $77.80 million for the quarter, compared to the consensus estimate of $79.78 million. Bitfarms had a negative net margin of 35.09% and a negative return on equity of 9.86%. On average, research analysts predict that Bitfarms Ltd. will post -0.21 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in BITF. Trium Capital LLP bought a new position in shares of Bitfarms during the 1st quarter valued at approximately $609,000. SBI Securities Co. Ltd. boosted its stake in Bitfarms by 69.9% in the 1st quarter. SBI Securities Co. Ltd. now owns 148,456 shares of the company's stock worth $117,000 after purchasing an additional 61,085 shares during the period. Theory Financial LLC purchased a new stake in shares of Bitfarms during the 1st quarter worth approximately $48,000. Private Advisor Group LLC raised its holdings in shares of Bitfarms by 26.2% during the 1st quarter. Private Advisor Group LLC now owns 178,100 shares of the company's stock worth $140,000 after acquiring an additional 37,000 shares in the last quarter. Finally, TD Asset Management Inc raised its holdings in Bitfarms by 5.0% during the 1st quarter. TD Asset Management Inc now owns 400,532 shares of the company's stock valued at $314,000 after buying an additional 19,089 shares during the period. 20.59% of the stock is currently owned by 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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