Cipher Mining (NASDAQ:CIFR) Shares Down 9.3% - Time to Sell?

Key Points

• Cipher Mining shares fell 9.3% to about $9.02, trading well below their 50-day and 200-day moving averages of $16.25 and $19.30, respectively.
• Analyst sentiment remains broadly positive despite the selloff: the stock has a consensus “Moderate Buy” rating and an average price target of $28.72, although some firms recently lowered their targets.
• The company’s latest quarterly results missed expectations, with a $0.65 per-share loss versus the expected $0.25 loss and revenue of $24.84 million versus the $31.86 million estimate; Cipher also reported deeply negative margins and return on equity.

Cipher Mining Inc. (NASDAQ:CIFR - Get Free Report)'s share price dropped 9.3% on Thursday. The stock traded as low as $8.90 and last traded at $9.0190. 12,421,139 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 29,863,281 shares. The stock had previously closed at $9.94.

Wall Street Analyst Weigh In

A number of research firms have commented on CIFR. Keefe, Bruyette & Woods reduced their target price on Cipher Mining from $32.00 to $28.00 and set an "outperform" rating on the stock in a report on Thursday, August 6th. Citigroup reiterated a "market outperform" rating on shares of Cipher Mining in a research report on Monday, August 10th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cipher Mining in a report on Monday, September 21st. Rosenblatt Securities reissued a "buy" rating and set a $30.00 price target on shares of Cipher Mining in a research report on Thursday, September 10th. Finally, JPMorgan Chase & Co. dropped their price target on Cipher Mining from $23.00 to $22.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $28.72.

Cipher Mining Trading Down 5.3%

The stock has a market cap of $3.91 billion, a price-to-earnings ratio of -3.29 and a beta of 3.20. The firm's 50 day moving average is $16.25 and its two-hundred day moving average is $19.30. The company has a quick ratio of 3.00, a current ratio of 3.00 and a debt-to-equity ratio of 9.69.

Cipher Mining (NASDAQ:CIFR - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported ($0.65) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.40). The business had revenue of $24.84 million during the quarter, compared to the consensus estimate of $31.86 million. Cipher Mining had a negative return on equity of 156.28% and a negative net margin of 585.75%. During the same period in the prior year, the business earned ($0.12) EPS. Equities analysts anticipate that Cipher Mining Inc. will post -1.36 EPS for the current year.

Institutional Trading of Cipher Mining

Several hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP boosted its position in shares of Cipher Mining by 567.1% during the second quarter. Wellington Management Group LLP now owns 3,985,806 shares of the company's stock worth $97,652,000 after buying an additional 3,388,359 shares during the period. Graham Capital Management L.P. acquired a new stake in Cipher Mining in the 4th quarter valued at approximately $33,329,000. Renaissance Technologies LLC bought a new stake in Cipher Mining during the 1st quarter valued at $24,486,000. Moore Capital Management LP bought a new stake in Cipher Mining during the 2nd quarter valued at $35,077,000. Finally, Troluce Capital Advisors LLC acquired a new position in Cipher Mining during the 1st quarter worth $17,374,000. Institutional investors own 12.26% of the company's stock.

About Cipher Mining

Cipher Mining Inc is a digital asset mining company focused on developing and operating infrastructure for Bitcoin mining in the United States. The company runs large-scale data centers equipped with specialized application-specific integrated circuit (ASIC) machines that process transactions and secure the Bitcoin network.

In addition to mining Bitcoin, Cipher Mining develops and manages the supporting infrastructure required for its operations, including power procurement, electrical systems, cooling, site development and data center management.

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