Bitfarms (NASDAQ:BITF) Stock Price Down 8.9% - What's Next?

Key Points

• Shares fell 8.9%, trading down to about $2.095 intraday (low $2.15); roughly 4.49 million shares changed hands, about 89% below the stock's average daily volume.
• Analysts are mixed but tilted positive: seven Buys, one Hold and one Sell give a consensus rating of “Moderate Buy” with a $4.04 average target (Cantor Fitzgerald raised its target to $5.00 while Weiss Ratings maintains a sell).
• Recent fundamentals show weakness: the latest quarter reported EPS of ($0.02) (in line with estimates) but revenue of $69.25M missed the $84.66M consensus, and the company has a negative net margin and negative return on equity; market cap is about $1.19 billion.

Bitfarms Ltd. (NASDAQ:BITF - Get Free Report)'s share price was down 8.9% on Wednesday . The stock traded as low as $2.15 and last traded at $2.0950. Approximately 4,487,819 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 39,179,691 shares. The stock had previously closed at $2.30.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on BITF. B. Riley reissued a "buy" rating on shares of Bitfarms in a report on Wednesday, October 22nd. Cantor Fitzgerald lifted their price target on shares of Bitfarms from $2.20 to $5.00 and gave the stock an "overweight" rating in a report on Friday, November 14th. Macquarie reissued an "outperform" rating on shares of Bitfarms in a research note on Monday, October 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Bitfarms in a research note on Wednesday, January 21st. Finally, Wall Street Zen downgraded Bitfarms from a "hold" rating to a "sell" rating in a research report on Saturday, November 15th. Seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Bitfarms has an average rating of "Moderate Buy" and a consensus target price of $4.04.

Bitfarms Stock Down 14.1%

The company has a debt-to-equity ratio of 0.11, a current ratio of 3.20 and a quick ratio of 3.14. The firm's 50-day moving average price is $2.74 and its 200-day moving average price is $2.65. The company has a market cap of $1.19 billion, a price-to-earnings ratio of -8.63 and a beta of 3.81.

Bitfarms (NASDAQ:BITF - Get Free Report) last released its quarterly earnings data on Thursday, November 13th. The company reported ($0.02) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.02). Bitfarms had a negative net margin of 48.26% and a negative return on equity of 4.48%. The business had revenue of $69.25 million for the quarter, compared to analysts' expectations of $84.66 million. Sell-side analysts forecast that Bitfarms Ltd. will post -0.21 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its stake in shares of Bitfarms by 8.6% in the third quarter. Invesco Ltd. now owns 14,373,522 shares of the company's stock valued at $40,533,000 after buying an additional 1,138,549 shares during the period. Vident Advisory LLC raised its holdings in shares of Bitfarms by 70.0% during the 2nd quarter. Vident Advisory LLC now owns 11,364,106 shares of the company's stock worth $9,538,000 after buying an additional 4,677,425 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Bitfarms by 36.8% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,060,389 shares of the company's stock valued at $19,941,000 after buying an additional 1,898,490 shares in the last quarter. Thames Capital Management LLC acquired a new position in Bitfarms during the third quarter worth about $19,834,000. Finally, Aurelius Capital Management LP bought a new position in shares of Bitfarms in the third quarter worth about $18,999,000. 20.59% of the stock is owned by institutional investors and hedge funds.

About Bitfarms

Bitfarms Ltd. is a publicly traded, vertically integrated Bitcoin mining company listed on the NASDAQ under the ticker BITF. The company engages in the large-scale operation of cryptocurrency mining farms, leveraging specialized computing hardware to validate and secure the Bitcoin blockchain. By converting electrical energy into computing power, Bitfarms plays a critical role in processing transactions on the Bitcoin network and earning mining rewards.

Bitfarms operates data centers in several jurisdictions with access to low-cost, primarily renewable energy sources.

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