Cleanspark (NASDAQ:CLSK) Shares Gap Down on Analyst Downgrade

Key Points

• Cleanspark shares gapped down Monday after Keefe, Bruyette & Woods cut its price target to $14 (from $18); the stock opened at $9.62 versus a prior close of $10.08 and last traded near $10.01 on heavy volume (~7.45M shares).
• Multiple other analysts also trimmed targets (Cantor Fitzgerald, B. Riley, Chardan, etc.), but MarketBeat shows a consensus of Moderate Buy with a $20.83 price target, indicating mixed analyst sentiment.
• Corporate insiders have been selling recently—directors sold 85,315 and 33,000 shares respectively—leaving insiders with about 2.08% ownership while institutional investors/hedge funds hold roughly 43.12%.

Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report) gapped down before the market opened on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $18.00 to $14.00. The stock had previously closed at $10.08, but opened at $9.62. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Cleanspark shares last traded at $10.01, with a volume of 7,454,190 shares changing hands.

Other equities research analysts also recently issued research reports about the company. Cantor Fitzgerald dropped their price objective on Cleanspark from $21.00 to $17.00 and set an "overweight" rating on the stock in a research report on Friday. B. Riley Financial cut their target price on Cleanspark from $25.00 to $22.00 and set a "buy" rating on the stock in a research report on Wednesday, November 26th. Weiss Ratings restated a "hold (c-)" rating on shares of Cleanspark in a research note on Monday, December 29th. Chardan Capital decreased their price objective on Cleanspark from $30.00 to $16.00 and set a "buy" rating for the company in a report on Friday. Finally, Maxim Group initiated coverage on shares of Cleanspark in a research report on Thursday, January 8th. They set a "buy" rating and a $22.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.83.

Insiders Place Their Bets

In other news, Director Thomas Leigh Wood sold 85,315 shares of Cleanspark stock in a transaction dated Tuesday, December 23rd. The stock was sold at an average price of $11.69, for a total value of $997,332.35. Following the completion of the transaction, the director owned 41,421 shares in the company, valued at approximately $484,211.49. This trade represents a 67.32% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Amanda Cavaleri sold 33,000 shares of Cleanspark stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $15.02, for a total value of $495,660.00. Following the sale, the director owned 107,289 shares in the company, valued at $1,611,480.78. This trade represents a 23.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.08% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cleanspark

Several hedge funds have recently modified their holdings of the company. Hantz Financial Services Inc. boosted its position in shares of Cleanspark by 115.5% in the third quarter. Hantz Financial Services Inc. now owns 1,748 shares of the company's stock worth $25,000 after buying an additional 937 shares during the period. Quarry LP acquired a new stake in Cleanspark in the third quarter valued at approximately $26,000. Salomon & Ludwin LLC acquired a new stake in shares of Cleanspark in the 3rd quarter valued at $32,000. Morse Asset Management Inc acquired a new stake in shares of Cleanspark in the third quarter worth about $32,000. Finally, Danske Bank A S bought a new stake in Cleanspark during the fourth quarter worth approximately $25,000. 43.12% of the stock is currently owned by institutional investors and hedge funds.

Cleanspark Stock Down 0.5%

The stock has a market cap of $2.57 billion, a P/E ratio of -9.36 and a beta of 3.47. The firm's fifty day moving average is $12.32 and its 200 day moving average is $12.99. The company has a current ratio of 10.54, a quick ratio of 10.54 and a debt-to-equity ratio of 1.29.

About Cleanspark

CleanSpark, Inc NASDAQ: CLSK is a leading energy software and services company specializing in advanced microgrid controls and distributed energy resource (DER) management. The firm develops proprietary software platforms designed to optimize power flows across on-grid and off-grid installations, integrating renewable generation, battery storage, and traditional generation assets. CleanSpark's technology is used by utilities, commercial and industrial enterprises, and remote facilities seeking to enhance energy resilience, reduce operating costs, and achieve sustainability goals.

In addition to its core software offerings, CleanSpark provides end-to-end engineering, procurement and construction (EPC) services.

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