Cleanspark (NASDAQ:CLSK) Shares Down 5.4% - Should You Sell?

Key Points

• Cleanspark, Inc. (NASDAQ: CLSK) shares declined by 5.4% to $11.68, with trading volume significantly down by 85% from the average.
• Despite the recent drop, analysts maintain a positive outlook, with eight firms issuing a "buy" rating and an average price target of $20.38.
• The company reported a revenue increase of 62.5% year-over-year but missed earnings expectations, posting ($0.02) EPS against a consensus estimate of $0.03.
• Insiders own only 2.65% of the company, with notable sales including Director Roger Paul Beynon selling 50,000 shares recently.

Shares of Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report) traded down 5.4% during trading on Friday . The stock traded as low as $11.69 and last traded at $11.68. 3,749,212 shares were traded during trading, a decline of 85% from the average session volume of 25,855,385 shares. The stock had previously closed at $12.34.

Analysts Set New Price Targets

Several research firms have issued reports on CLSK. Chardan Capital reiterated a "buy" rating and set a $20.00 price objective on shares of Cleanspark in a research note on Tuesday, July 8th. BTIG Research reiterated a "buy" rating on shares of Cleanspark in a research note on Friday, June 13th. LADENBURG THALM/SH SH began coverage on shares of Cleanspark in a research note on Monday. They set a "buy" rating and a $20.25 price objective for the company. B. Riley began coverage on shares of Cleanspark in a research note on Tuesday, July 1st. They set a "buy" rating and a $16.00 price objective for the company. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Cleanspark from $14.00 to $15.00 and gave the stock an "overweight" rating in a research note on Monday. Nine analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, Cleanspark has a consensus rating of "Buy" and an average target price of $20.69.

Cleanspark Stock Down 2.5%

The firm has a market capitalization of $3.30 billion, a PE ratio of -12.22 and a beta of 4.23. The firm's 50 day moving average price is $10.68 and its two-hundred day moving average price is $9.56.

Cleanspark (NASDAQ:CLSK - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.05). The firm had revenue of $181.71 million during the quarter, compared to analysts' expectations of $196.43 million. Cleanspark had a negative net margin of 35.43% and a negative return on equity of 4.65%. Cleanspark's revenue for the quarter was up 62.5% compared to the same quarter last year. During the same quarter last year, the company posted $0.59 earnings per share. On average, sell-side analysts anticipate that Cleanspark, Inc. will post 0.58 earnings per share for the current fiscal year.

Insider Buying and Selling at Cleanspark

In other Cleanspark news, Director Roger Paul Beynon sold 50,000 shares of the stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $10.51, for a total transaction of $525,500.00. Following the transaction, the director directly owned 125,511 shares in the company, valued at $1,319,120.61. This represents a 28.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 2.65% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Fifth Third Bancorp boosted its stake in Cleanspark by 145.3% during the 2nd quarter. Fifth Third Bancorp now owns 2,860 shares of the company's stock valued at $32,000 after acquiring an additional 1,694 shares during the last quarter. CX Institutional bought a new position in Cleanspark during the 1st quarter valued at $26,000. Strs Ohio bought a new position in Cleanspark during the 1st quarter valued at $38,000. Russell Investments Group Ltd. boosted its stake in Cleanspark by 60.0% during the 4th quarter. Russell Investments Group Ltd. now owns 5,859 shares of the company's stock valued at $54,000 after acquiring an additional 2,196 shares during the last quarter. Finally, West Oak Capital LLC boosted its stake in Cleanspark by 3,422.5% during the 2nd quarter. West Oak Capital LLC now owns 6,728 shares of the company's stock valued at $74,000 after acquiring an additional 6,537 shares during the last quarter. 43.12% of the stock is currently owned by institutional investors.

Cleanspark Company Profile

CleanSpark, Inc operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc and changed its name to CleanSpark, Inc in November 2016.