Cipher Mining (NASDAQ:CIFR) Shares Down 19.6% After Analyst Downgrade

Key Points

• Cipher Mining shares fell 19.6% after Sanford C. Bernstein lowered its price target from $32 to $23, while maintaining an “outperform” rating.
• Several other analysts also cut price targets, though most retained positive ratings; MarketBeat reports a “Moderate Buy” consensus and a $24.25 average target.
• Quarterly results showed mixed performance: Cipher beat EPS estimates, but revenue of $26.7 million missed expectations and declined 62.8% year over year.

Cipher Mining Inc. (NASDAQ:CIFR - Get Free Report) shares traded down 19.6% during trading on Thursday after Sanford C. Bernstein lowered their price target on the stock from $32.00 to $23.00. Sanford C. Bernstein currently has an outperform rating on the stock. Cipher Mining traded as low as $5.11 and last traded at $5.2230. Approximately 27,962,085 shares traded hands during trading, a decline of 12% from the average daily volume of 31,680,197 shares. The stock had previously closed at $6.50.

A number of other analysts have also commented on CIFR. Wells Fargo & Company dropped their price target on Cipher Mining from $25.00 to $15.00 and set an "overweight" rating for the company in a research note on Tuesday. JPMorgan Chase & Co. dropped their target price on shares of Cipher Mining from $22.00 to $18.00 and set an "overweight" rating for the company in a research report on Tuesday. Cantor Fitzgerald dropped their target price on shares of Cipher Mining from $19.00 to $15.00 and set an "overweight" rating for the company in a research report on Tuesday. Citigroup reiterated a "market outperform" rating on shares of Cipher Mining in a research report on Monday, August 10th. Finally, Needham & Company LLC decreased their price target on shares of Cipher Mining from $25.00 to $15.00 and set a "buy" rating for the company in a research note on Tuesday. Fifteen equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $24.25.

Cipher Mining News Summary

Here are the key news stories impacting Cipher Mining this week:

• Positive Sentiment: Cipher’s AI-infrastructure transition is beginning to generate lease revenue. Recent coverage cited a Barber Lake lease expansion and as much as $16.6 billion in contracted revenue, supporting the longer-term growth case. Article: Cipher Digital books first HPC lease revenue as Bitcoin mining fades Article: CIFR Q3 Earnings Call Highlights Growth Plans and Cost Pressures
• Positive Sentiment: Some analysts still see substantial upside despite lowering estimates: Sanford C. Bernstein retained an “outperform” rating with a $23 target, while other firms have kept positive ratings at reduced targets. Sanford C. Bernstein recommendation
• Negative Sentiment: Election results are adding sector-specific uncertainty. Reports say Democratic midterm wins raised investor fears that tighter regulation could delay data-center construction and constrain AI infrastructure growth, weighing on Cipher and other data-center stocks. Article: Cipher Stock Plummets After Democrats’ Midterm Wins
• Negative Sentiment: Analyst sentiment has weakened: Keefe, Bruyette & Woods cut CIFR to “market perform,” and Cantor Fitzgerald, JPMorgan, Needham, and Rosenblatt lowered price targets. The lower estimates reinforce concerns about the stock’s near-term outlook, even where analysts continue to see upside. Article: Rating cut to Market Perform
• Negative Sentiment: Investors are also weighing AI-project funding needs. Coverage noted that an $850 million convertible-debt offering contributed to October’s steep decline, while the sector is favoring companies with credit-backed tenants and financing certainty. Article: Why Cipher Digital Stock Lost 53.9% in October

Institutional Investors Weigh In On Cipher Mining

Institutional investors have recently modified their holdings of the stock. GK Wealth Management LLC bought a new stake in Cipher Mining in the 3rd quarter worth approximately $25,000. CoreCap Advisors LLC lifted its holdings in Cipher Mining by 41.7% in the second quarter. CoreCap Advisors LLC now owns 1,700 shares of the company's stock valued at $42,000 after acquiring an additional 500 shares during the period. Ancora Advisors LLC purchased a new position in Cipher Mining in the second quarter worth about $49,000. Harbor Investment Advisory LLC purchased a new position in Cipher Mining in the second quarter worth about $58,000. Finally, Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Cipher Mining during the 3rd quarter valued at about $42,000. 12.26% of the stock is owned by hedge funds and other institutional investors.

Cipher Mining Stock Down 14.0%

The stock has a market cap of $2.55 billion, a PE ratio of -1.76 and a beta of 3.53. The company has a debt-to-equity ratio of 9.10, a quick ratio of 3.00 and a current ratio of 1.69. The company's 50-day moving average price is $13.65 and its 200 day moving average price is $17.59.

Cipher Mining (NASDAQ:CIFR - Get Free Report) last released its earnings results on Monday, November 2nd. The company reported ($0.22) EPS for the quarter, topping analysts' consensus estimates of ($0.25) by $0.03. Cipher Mining had a negative net margin of 742.33% and a negative return on equity of 161.74%. The company had revenue of $26.70 million for the quarter, compared to analysts' expectations of $39.31 million. During the same quarter last year, the business earned $0.10 EPS. The firm's revenue was down 62.8% compared to the same quarter last year. As a group, analysts forecast that Cipher Mining Inc. will post -1.36 EPS for the current fiscal year.

About Cipher Mining

Cipher Mining Inc NASDAQ: CIFR is a bitcoin mining company that develops and operates large-scale data center infrastructure in the United States. The company uses specialized application-specific integrated circuit (ASIC) computers to validate transactions on the Bitcoin network and earn bitcoin rewards.

Cipher focuses on securing access to cost-effective power, building and managing mining facilities, and deploying high-performance computing equipment. Its operations are supported by power infrastructure, cooling systems, networking equipment and other data center technologies required for energy-intensive digital asset mining.

The company was formed through the combination of Cipher Mining Technologies Inc and Good Works Acquisition Corp.

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