Core Scientific (NASDAQ:CORZ) Shares Gap Down - Should You Sell?

Key Points

• Core Scientific's stock price dropped significantly, from a previous close of $15.11 to an opening price of $14.54, eventually trading at $14.07 with over 3.7 million shares exchanged.
• Following several analyst rating changes, there are currently eleven hold ratings, nine buy ratings, and one strong buy rating, with a consensus target price of $18.32 for the stock.
• In terms of insider activity, Director Yadin Rozov increased his stake in the company by purchasing 110,000 shares at $10.87 each, indicating confidence in the company's future prospects.

Core Scientific, Inc. (NASDAQ:CORZ - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $15.11, but opened at $14.54. Core Scientific shares last traded at $14.07, with a volume of 3,790,215 shares.

Wall Street Analysts Forecast Growth

CORZ has been the topic of several recent analyst reports. Citigroup downgraded Core Scientific from an "outperform" rating to a "market perform" rating in a report on Monday, July 14th. Macquarie downgraded Core Scientific from a "strong-buy" rating to a "hold" rating and set a $15.00 price objective on the stock. in a report on Thursday, July 10th. B. Riley downgraded Core Scientific from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 9th. Citizens Jmp downgraded Core Scientific from a "strong-buy" rating to a "hold" rating in a report on Monday, July 14th. Finally, Jefferies Financial Group restated a "buy" rating and set a $22.00 price objective (up previously from $16.00) on shares of Core Scientific in a report on Monday. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $18.47.

Core Scientific Price Performance

The business has a fifty day moving average of $13.80 and a 200 day moving average of $11.00. The stock has a market cap of $4.44 billion, a price-to-earnings ratio of -25.95 and a beta of 6.60.

Core Scientific (NASDAQ:CORZ - Get Free Report) last released its quarterly earnings data on Friday, August 8th. The company reported ($0.04) EPS for the quarter, topping analysts' consensus estimates of ($0.07) by $0.03. The firm had revenue of $78.63 million during the quarter, compared to analyst estimates of $82.09 million. The business's quarterly revenue was down 44.3% compared to the same quarter last year. On average, analysts expect that Core Scientific, Inc. will post 0.52 EPS for the current year.

Insider Buying and Selling

In other news, Director Yadin Rozov acquired 110,000 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The shares were purchased at an average price of $10.87 per share, for a total transaction of $1,195,700.00. Following the completion of the acquisition, the director owned 475,687 shares of the company's stock, valued at approximately $5,170,717.69. This represents a 30.08% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Todd M. Duchene sold 60,000 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $11.33, for a total value of $679,800.00. Following the sale, the insider directly owned 2,100,102 shares of the company's stock, valued at $23,794,155.66. The trade was a 2.78% decrease in their position. The disclosure for this sale can be found here. Insiders sold 117,759 shares of company stock worth $1,391,434 in the last 90 days. 1.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Core Scientific

Large investors have recently added to or reduced their stakes in the stock. HHM Wealth Advisors LLC boosted its position in Core Scientific by 96.5% during the second quarter. HHM Wealth Advisors LLC now owns 1,926 shares of the company's stock worth $33,000 after purchasing an additional 946 shares during the period. Advisors Asset Management Inc. boosted its position in Core Scientific by 68.3% during the second quarter. Advisors Asset Management Inc. now owns 2,690 shares of the company's stock worth $46,000 after purchasing an additional 1,092 shares during the period. Bernard Wealth Management Corp. bought a new stake in Core Scientific during the second quarter worth approximately $51,000. PNC Financial Services Group Inc. boosted its position in Core Scientific by 396.8% during the second quarter. PNC Financial Services Group Inc. now owns 3,731 shares of the company's stock worth $64,000 after purchasing an additional 2,980 shares during the period. Finally, Farther Finance Advisors LLC bought a new stake in Core Scientific during the second quarter worth approximately $65,000.

About Core Scientific

Core Scientific, Inc provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment.