DeFi Technologies (NASDAQ:DEFT) Shares Gap Down After Earnings Miss

Key Points

• DeFi Technologies (NASDAQ:DEFT) shares gapped down from $2.61 to $2.45 following disappointing quarterly earnings, reporting an EPS of $0.05 against an expectation of $0.07.
• The company's revenue of $13.42 million fell significantly short of analyst expectations of $42.08 million, indicating serious financial challenges.
• Despite the poor earnings report, some analysts have maintained a buy rating for the stock with target prices adjusted upward, reflecting mixed sentiment among investors.

DeFi Technologies Inc. (NASDAQ:DEFT - Get Free Report)'s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2.61, but opened at $2.45. DeFi Technologies shares last traded at $2.40, with a volume of 1,294,412 shares trading hands.

The company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.07 by ($0.02). DeFi Technologies had a net margin of 43.38% and a return on equity of 109.68%. The firm had revenue of $13.42 million for the quarter, compared to the consensus estimate of $42.08 million.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on DEFT. Maxim Group raised their price target on shares of DeFi Technologies from $6.50 to $7.00 and gave the company a "buy" rating in a research report on Tuesday, May 27th. HC Wainwright reissued a "buy" rating and set a $5.50 price target on shares of DeFi Technologies in a research report on Tuesday. Finally, Wall Street Zen raised shares of DeFi Technologies to a "hold" rating in a research report on Friday, May 30th. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $6.25.

Institutional Trading of DeFi Technologies

Several hedge funds and other institutional investors have recently modified their holdings of DEFT. Rathbones Group PLC bought a new stake in shares of DeFi Technologies in the second quarter valued at approximately $8,789,000. Bank of Montreal Can bought a new stake in shares of DeFi Technologies in the second quarter valued at approximately $7,891,000. Marshall Wace LLP bought a new stake in shares of DeFi Technologies in the second quarter valued at approximately $5,635,000. Invesco Ltd. bought a new stake in shares of DeFi Technologies in the second quarter valued at approximately $3,266,000. Finally, Swiss National Bank purchased a new position in DeFi Technologies during the second quarter valued at approximately $1,727,000.

DeFi Technologies Stock Performance

The stock's 50 day moving average is $2.87. The stock has a market capitalization of $712.79 million, a P/E ratio of 23.44 and a beta of 3.93.

DeFi Technologies Company Profile

DeFi Technologies, Inc engages in the provision of investment services. It plans to acquire equity, debt, or other securities of publicly traded or private companies or other entities. The firm offers DeFi ETNs, DeFi Governance, DeFi Venture and DeFi Treasury. The company was founded by Olivier Francois Roussy Newton and Wouter Witvoet on April 14, 1986 and is headquartered in Toronto, Canada.