IREN (NASDAQ:IREN) Trading Down 5.8% - Should You Sell?

Key Points

• IREN Limited's stock price dropped 5.8% during mid-day trading, closing at $16.70 after previously hitting a low of $16.69.
• Analysts have given mixed ratings on IREN, with a consensus of "Moderate Buy" and a price target averaging $20.89, while some firms raised their targets significantly.
• The company reported earnings that missed expectations with a loss of $0.06 compared to analyst estimates, raising concerns about its negative margins and return on equity.

IREN Limited (NASDAQ:IREN - Get Free Report)'s stock price traded down 5.8% during mid-day trading on Monday . The stock traded as low as $16.69 and last traded at $16.70. 11,306,669 shares were traded during mid-day trading, a decline of 39% from the average session volume of 18,554,621 shares. The stock had previously closed at $17.72.

Wall Street Analyst Weigh In

IREN has been the subject of a number of research analyst reports. JPMorgan Chase & Co. restated a "neutral" rating and issued a $16.00 price target (up previously from $12.00) on shares of IREN in a research report on Monday. Wall Street Zen raised IREN from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Macquarie increased their price objective on IREN from $15.50 to $20.00 and gave the company an "outperform" rating in a research note on Thursday, May 15th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $23.00 price objective on shares of IREN in a research note on Friday, May 16th. Finally, B. Riley reissued a "buy" rating and issued a $22.00 price target (up from $15.00) on shares of IREN in a research note on Thursday, July 10th. Three investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $20.89.

IREN Stock Down 6.4%

The firm has a 50 day moving average price of $12.79 and a two-hundred day moving average price of $9.94.

IREN (NASDAQ:IREN - Get Free Report) last announced its earnings results on Wednesday, May 14th. The company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.06). IREN had a negative net margin of 9.40% and a negative return on equity of 2.12%. The company had revenue of $148.10 million for the quarter, compared to analysts' expectations of $153.38 million. Sell-side analysts anticipate that IREN Limited will post 0.43 earnings per share for the current fiscal year.

Institutional Trading of IREN

Hedge funds and other institutional investors have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership raised its position in shares of IREN by 1,307.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,684,836 shares of the company's stock worth $55,825,000 after purchasing an additional 5,280,999 shares during the period. Situational Awareness LP acquired a new position in IREN during the first quarter valued at $20,500,000. Vident Advisory LLC raised its position in IREN by 0.6% during the first quarter. Vident Advisory LLC now owns 2,956,712 shares of the company's stock valued at $18,006,000 after buying an additional 18,794 shares during the period. Invesco Ltd. raised its position in IREN by 22.5% during the fourth quarter. Invesco Ltd. now owns 2,311,583 shares of the company's stock valued at $22,700,000 after buying an additional 424,403 shares during the period. Finally, Regal Partners Ltd grew its stake in IREN by 93.9% in the fourth quarter. Regal Partners Ltd now owns 1,697,554 shares of the company's stock valued at $16,670,000 after purchasing an additional 822,251 shares in the last quarter. Institutional investors own 41.08% of the company's stock.

About IREN

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

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