Engle Capital Management L.P. Invests $5.03 Million in TeraWulf Inc. $WULF

Key Points

• Engle Capital Management opened a new position in TeraWulf, buying 437,500 shares worth about $5.03 million. The stake represents roughly 1.9% of the fund’s holdings and about 0.10% of TeraWulf’s shares outstanding.
• TeraWulf’s latest results were weak, with quarterly EPS of -$1.01 versus expectations of -$0.19 and revenue of $34.01 million, slightly below estimates. The company also posted steep negative margins and expects full-year EPS of -0.96.
• Analysts remain mostly bullish despite the losses, with several firms raising or initiating buy-equivalent ratings and an average price target of $31.86. The stock also saw insider activity, including CEO Paul B. Prager selling shares under a pre-arranged trading plan.

Engle Capital Management L.P. acquired a new position in TeraWulf Inc. (NASDAQ:WULF - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 437,500 shares of the company's stock, valued at approximately $5,027,000. TeraWulf comprises about 1.9% of Engle Capital Management L.P.'s holdings, making the stock its 18th largest holding. Engle Capital Management L.P. owned approximately 0.10% of TeraWulf as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Advisory Services Network LLC purchased a new position in shares of TeraWulf in the 3rd quarter worth approximately $29,000. Vermillion Wealth Management Inc. grew its position in shares of TeraWulf by 1,191.0% in the 4th quarter. Vermillion Wealth Management Inc. now owns 2,595 shares of the company's stock worth $30,000 after buying an additional 2,394 shares during the last quarter. Solstein Capital LLC purchased a new position in shares of TeraWulf in the 4th quarter worth approximately $34,000. Activest Wealth Management purchased a new position in shares of TeraWulf in the 4th quarter worth approximately $46,000. Finally, PNC Financial Services Group Inc. grew its position in shares of TeraWulf by 116.3% in the 3rd quarter. PNC Financial Services Group Inc. now owns 5,346 shares of the company's stock worth $61,000 after buying an additional 2,874 shares during the last quarter. Hedge funds and other institutional investors own 62.49% of the company's stock.

TeraWulf Stock Down 0.5%

NASDAQ:WULF opened at $27.86 on Thursday. The company has a market cap of $13.81 billion, a PE ratio of -11.23 and a beta of 3.82. TeraWulf Inc. has a twelve month low of $3.39 and a twelve month high of $29.30. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 33.00. The company's 50 day moving average is $22.90 and its two-hundred day moving average is $17.42.

TeraWulf (NASDAQ:WULF - Get Free Report) last released its earnings results on Friday, May 8th. The company reported ($1.01) earnings per share for the quarter, missing the consensus estimate of ($0.19) by ($0.82). The company had revenue of $34.01 million for the quarter, compared to analysts' expectations of $34.69 million. TeraWulf had a negative return on equity of 305.07% and a negative net margin of 611.46%.The firm's revenue for the quarter was down 1.1% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.16) EPS. Analysts anticipate that TeraWulf Inc. will post -0.96 EPS for the current year.

Insider Activity at TeraWulf

In other TeraWulf news, CEO Paul B. Prager sold 166,650 shares of TeraWulf stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $24.43, for a total transaction of $4,071,259.50. Following the completion of the sale, the chief executive officer directly owned 4,249,202 shares in the company, valued at approximately $103,808,004.86. The trade was a 3.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael C. Bucella acquired 1,665 shares of the firm's stock in a transaction on Friday, March 20th. The shares were acquired at an average price of $15.04 per share, with a total value of $25,041.60. Following the completion of the purchase, the director owned 280,052 shares in the company, valued at approximately $4,211,982.08. This trade represents a 0.60% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have sold 520,850 shares of company stock valued at $10,778,114. Company insiders own 15.90% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on WULF shares. Keefe, Bruyette & Woods lifted their price objective on shares of TeraWulf from $25.00 to $33.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Bank of America started coverage on shares of TeraWulf in a research report on Monday. They set a "buy" rating and a $34.00 target price on the stock. Oppenheimer reissued an "outperform" rating and set a $35.00 target price on shares of TeraWulf in a research report on Wednesday, May 27th. Jefferies Financial Group started coverage on shares of TeraWulf in a research report on Thursday, May 14th. They set a "buy" rating and a $28.00 target price on the stock. Finally, Cantor Fitzgerald boosted their target price on shares of TeraWulf from $30.00 to $31.00 and gave the stock an "overweight" rating in a research report on Monday, May 11th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, TeraWulf currently has a consensus rating of "Moderate Buy" and an average price target of $31.86.

TeraWulf Profile

TeraWulf, Inc NASDAQ: WULF is a digital asset infrastructure company focused on the development and operation of zero-carbon bitcoin mining facilities. The company integrates sustainable power generation with high-density data center technologies to deliver environmentally responsible digital asset mining services. Its core business revolves around designing, building and operating large-scale mining projects powered exclusively by renewable or emissions-free energy sources.

One of TeraWulf’s flagship projects is “Project Nautilus,” located in Tompkins County, New York, which harnesses hydroelectric power sourced from the New York State Electric & Gas (NYSEG) grid.

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