Cipher Mining (NASDAQ:CIFR) Shares Gap Down Following Analyst Downgrade

Key Points

• Shares fell sharply after Keefe, Bruyette & Woods downgraded Cipher Mining from “outperform” to “market perform”; the stock opened at $6.99 versus its prior $8.12 close. The firm set a $9.50 price target.
• Analyst views remain broadly positive but targets have been cut: the consensus rating is “Moderate Buy” with a $24.81 target, while several firms recently lowered their targets to $15–$19.
• Cipher is shifting toward data-center and high-performance-computing hosting, reporting initial lease revenue and $9.1 billion in contracted revenue. However, quarterly revenue fell 62.8% year over year, and debt, interest costs, and execution risks remain concerns.

Cipher Mining Inc. (NASDAQ:CIFR - Get Free Report) shares gapped down prior to trading on Wednesday after Keefe, Bruyette & Woods downgraded the stock from an outperform rating to a market perform rating. The stock had previously closed at $8.12, but opened at $6.99. Keefe, Bruyette & Woods now has a $9.50 price target on the stock. Cipher Mining shares last traded at $6.7980, with a volume of 24,621,566 shares traded.

A number of other research analysts have also weighed in on CIFR. Chardan Capital reissued a "buy" rating and set a $32.00 target price on shares of Cipher Mining in a research report on Tuesday, August 4th. Rosenblatt Securities dropped their price objective on Cipher Mining from $30.00 to $19.00 and set a "buy" rating on the stock in a research note on Tuesday. Cantor Fitzgerald cut their price objective on Cipher Mining from $19.00 to $15.00 and set an "overweight" rating for the company in a research report on Tuesday. Wells Fargo & Company cut their price objective on Cipher Mining from $25.00 to $15.00 and set an "overweight" rating for the company in a research report on Tuesday. Finally, Needham & Company LLC decreased their target price on Cipher Mining from $25.00 to $15.00 and set a "buy" rating for the company in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $24.81.

More Cipher Mining News

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

• Positive Sentiment: Cipher reported its first high-performance computing lease revenue, while an expansion at Barber Lake lifted contracted revenue to $9.1 billion. This supports the company’s transition from Bitcoin mining toward data-center hosting. Cipher Digital books first HPC lease revenue as Bitcoin mining fades
• Positive Sentiment: The Colchis site received a conditional 1-gigawatt base-load classification, potentially supporting future data-center development. Cipher Digital: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Investors are comparing former crypto miners on their ability to secure AI/data-center tenants. That focus may make Cipher’s lease progress a potential advantage, but also leaves it under scrutiny against peers with announced customer commitments. Riot Platforms Soars on Earnings and AI Lease; Cipher Digital Plunges
• Negative Sentiment: Keefe, Bruyette & Woods downgraded CIFR from “outperform” to “market perform” and set a $9.50 target, adding to recent target reductions and weighing on sentiment. Keefe, Bruyette & Woods recommendations
• Negative Sentiment: Recent results highlighted execution and financing risks: Bitcoin-mining revenue fell sharply, initial HPC rent was modest by comparison, and substantial borrowings drove high interest expense. A prior $850 million convertible-debt offering also contributed to investor concerns about AI-sector financing and potential dilution. Cipher Digital Profit Is a Warrant Gain

Institutional Investors Weigh In On Cipher Mining

Hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP boosted its holdings in shares of Cipher Mining by 567.1% in the 2nd quarter. Wellington Management Group LLP now owns 3,985,806 shares of the company's stock worth $97,652,000 after acquiring an additional 3,388,359 shares in the last quarter. Renaissance Technologies LLC bought a new stake in Cipher Mining during the 1st quarter worth approximately $24,486,000. Moore Capital Management LP acquired a new stake in Cipher Mining during the 2nd quarter valued at $35,077,000. Troluce Capital Advisors LLC acquired a new stake in Cipher Mining during the 1st quarter valued at $17,374,000. Finally, Bank of America Corp DE increased its holdings in Cipher Mining by 237.7% during the 1st quarter. Bank of America Corp DE now owns 1,414,667 shares of the company's stock valued at $18,207,000 after purchasing an additional 995,735 shares in the last quarter. Institutional investors own 12.26% of the company's stock.

Cipher Mining Trading Down 16.9%

The company has a 50-day simple moving average of $13.85 and a 200-day simple moving average of $17.65. The company has a debt-to-equity ratio of 9.69, a quick ratio of 3.00 and a current ratio of 3.00. The stock has a market cap of $2.80 billion, a P/E ratio of -2.18 and a beta of 3.53.

Cipher Mining (NASDAQ:CIFR - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The company reported ($0.22) EPS for the quarter, topping analysts' consensus estimates of ($0.25) by $0.03. The company had revenue of $26.70 million for the quarter, compared to analyst estimates of $39.31 million. Cipher Mining had a negative return on equity of 156.28% and a negative net margin of 742.33%. The business's revenue was down 62.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.10 earnings per share. On average, sell-side 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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