Cipher Mining (NASDAQ:CIFR) Shares Gap Down After Earnings Miss

Key Points

• Cipher Mining shares plunged, opening at $20.25 versus a prior close of $24.16, after the company reported disappointing quarterly results.
• The bitcoin miner reported a $0.65 per-share loss, missing the $0.24 consensus estimate, while revenue of $24.84 million fell short of the $31.86 million forecast.
• Despite the earnings miss, analysts maintain a “Moderate Buy” consensus with an average price target of $28.74; however, insiders sold 3.25 million shares worth approximately $83.8 million over the past 90 days.

Shares of Cipher Mining Inc. (NASDAQ:CIFR - Get Free Report) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $24.16, but opened at $20.25. Cipher Mining shares last traded at $21.1930, with a volume of 16,252,735 shares changing hands.

The company reported ($0.65) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.41). The business had revenue of $24.84 million for the quarter, compared to the consensus estimate of $31.86 million. Cipher Mining had a negative net margin of 427.79% and a negative return on equity of 117.65%. During the same period in the previous year, the firm earned ($0.12) EPS.

Wall Street Analysts Forecast Growth

CIFR has been the topic of a number of recent research reports. Cantor Fitzgerald dropped their price objective on Cipher Mining from $24.00 to $22.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Jefferies Financial Group assumed coverage on Cipher Mining in a report on Thursday, May 14th. They set a "buy" rating and a $32.00 target price for the company. HC Wainwright upped their price target on Cipher Mining from $25.00 to $30.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Sanford C. Bernstein started coverage on shares of Cipher Mining in a report on Wednesday, June 3rd. They issued an "outperform" rating and a $32.00 price target on the stock. Finally, BTIG Research raised their price objective on shares of Cipher Mining from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $28.74.

Insider Activity at Cipher Mining

In related news, Director Cary M. Grossman sold 20,000 shares of the company's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $21.82, for a total value of $436,400.00. Following the transaction, the director directly owned 150,530 shares in the company, valued at approximately $3,284,564.60. This represents a 11.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Holding Ltd V3 sold 1,800,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $26.62, for a total transaction of $47,916,000.00. Following the completion of the sale, the insider directly owned 59,516,694 shares in the company, valued at $1,584,334,394.28. This represents a 2.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 3,245,336 shares of company stock valued at $83,803,938 in the last ninety days. Insiders own 3.09% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in shares of Cipher Mining by 43.2% during the 4th quarter. Vanguard Group Inc. now owns 32,680,186 shares of the company's stock valued at $482,360,000 after buying an additional 9,865,533 shares in the last quarter. Voloridge Investment Management LLC bought a new stake in Cipher Mining during the 3rd quarter valued at $70,524,000. Situational Awareness LP raised its stake in shares of Cipher Mining by 82.4% during the fourth quarter. Situational Awareness LP now owns 10,469,093 shares of the company's stock valued at $154,524,000 after acquiring an additional 4,728,600 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in Cipher Mining by 3,718.3% in the 4th quarter. Janus Henderson Group PLC now owns 4,292,790 shares of the company's stock worth $63,359,000 after buying an additional 4,180,362 shares during the period. Finally, Millennium Management LLC purchased a new stake in Cipher Mining in the first quarter worth $9,316,000. 12.26% of the stock is currently owned by hedge funds and other institutional investors.

Cipher Mining Stock Performance

The company has a debt-to-equity ratio of 6.13, a quick ratio of 3.13 and a current ratio of 3.13. The company's 50-day moving average price is $23.39 and its 200 day moving average price is $19.12. The stock has a market capitalization of $8.62 billion, a PE ratio of -9.04 and a beta of 3.20.

About Cipher Mining

Cipher Mining Inc is a Nasdaq-listed bitcoin mining company that develops, owns and operates large-scale mining facilities across the United States. The company focuses on deploying advanced ASIC hardware and securing long-term low-cost power contracts to optimize bitcoin production. By strategically locating its sites in regions with abundant energy supply, Cipher Mining seeks to maintain a competitive cost structure and deliver efficient hashrate capacity growth.

Founded in 2021 and headquartered in Austin, Texas, Cipher Mining has pursued an integrated approach encompassing site development, equipment procurement and operations management.

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