Investors Buy High Volume of Call Options on TeraWulf (NASDAQ:WULF)

Key Points

• Unusual options activity: Investors bought 267,907 TeraWulf call options on Tuesday, about 77% above the stock’s typical daily call volume.
• Shares surged and hovered near highs: WULF rose $2.79 to $25.61, with trading volume above average and the stock nearing its 52-week high of $25.93.
• Mixed fundamentals, but bullish analyst sentiment: The company posted a wider-than-expected quarterly loss, yet analysts remain generally positive, with 13 Buy ratings and a consensus target price of $27.59.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Investors acquired 267,907 call options on the company. This is an increase of approximately 77% compared to the typical daily volume of 151,615 call options.

Analyst Upgrades and Downgrades

Several research firms recently commented on WULF. Roth Mkm reaffirmed a "buy" rating and issued a $32.00 target price on shares of TeraWulf in a report on Friday, April 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of TeraWulf in a report on Friday, March 27th. Citigroup reaffirmed an "outperform" rating on shares of TeraWulf in a report on Thursday, May 7th. Needham & Company LLC lifted their target price on shares of TeraWulf from $22.00 to $28.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Finally, Oppenheimer lifted their target price on shares of TeraWulf from $20.00 to $25.00 and gave the stock an "outperform" rating in a report on Monday, April 20th. Thirteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, TeraWulf has an average rating of "Moderate Buy" and a consensus target price of $27.59.

TeraWulf Stock Performance

WULF stock traded up $2.79 during midday trading on Tuesday, reaching $25.61. 38,321,988 shares of the company's stock traded hands, compared to its average volume of 31,122,318. TeraWulf has a 52-week low of $3.39 and a 52-week high of $25.93. The stock has a market cap of $12.69 billion, a P/E ratio of -10.33 and a beta of 3.84. 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 stock's 50-day moving average is $19.27 and its 200 day moving average is $15.85.

TeraWulf (NASDAQ:WULF - Get Free Report) last posted its quarterly earnings results on Friday, May 8th. The company reported ($1.01) earnings per share for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.82). The firm had revenue of $34.01 million during the quarter, compared to the consensus estimate of $34.69 million. TeraWulf had a negative return on equity of 305.07% and a negative net margin of 611.46%.The business's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.16) earnings per share. As a group, analysts anticipate that TeraWulf will post -0.53 EPS for the current year.

Insider Activity

In other TeraWulf news, Director Michael C. Bucella acquired 1,665 shares of the company's stock in a transaction that occurred 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 directly owned 280,052 shares of the company's stock, valued at approximately $4,211,982.08. The trade was a 0.60% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Patrick Fleury sold 26,414 shares of the business's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $16.14, for a total transaction of $426,321.96. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have purchased 13,094 shares of company stock valued at $200,392 and have sold 954,200 shares valued at $16,390,854. Insiders own 15.90% of the company's stock.

Hedge Funds Weigh In On TeraWulf

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in TeraWulf by 37.4% during the fourth quarter. Vanguard Group Inc. now owns 33,643,009 shares of the company's stock valued at $386,558,000 after purchasing an additional 9,162,958 shares during the last quarter. Oppenheimer & Co. Inc. lifted its position in TeraWulf by 45.1% during the fourth quarter. Oppenheimer & Co. Inc. now owns 140,101 shares of the company's stock valued at $1,610,000 after purchasing an additional 43,574 shares during the last quarter. Pictet Asset Management Holding SA lifted its position in TeraWulf by 178.8% during the fourth quarter. Pictet Asset Management Holding SA now owns 151,005 shares of the company's stock valued at $1,735,000 after purchasing an additional 96,843 shares during the last quarter. First Dallas Securities Inc. lifted its position in TeraWulf by 99.2% during the third quarter. First Dallas Securities Inc. now owns 264,000 shares of the company's stock valued at $3,015,000 after purchasing an additional 131,500 shares during the last quarter. Finally, Quantbot Technologies LP bought a new position in TeraWulf during the third quarter valued at $3,350,000. Institutional investors own 62.49% of the company's stock.

TeraWulf Company 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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