Cipher Mining (NASDAQ:CIFR) Shares Up 10.2% After Strong Earnings

Key Points

• Cipher Mining shares jumped 10.2% after the company reported a quarterly loss of $0.22 per share, beating the consensus estimate of a $0.25 loss.
• Revenue totaled $26.7 million, missing the $39.3 million estimate and falling 62.8% year over year, as bitcoin-mining revenue declined 71%; initial HPC rent provided only partial offset.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating, but price targets were cut by several firms and substantial debt-related interest expense continues to pressure profitability.

Cipher Mining Inc. (NASDAQ:CIFR - Get Free Report) rose 10.2% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $7.74 and last traded at $7.5580. Approximately 7,112,599 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 31,083,566 shares. The stock had previously closed at $6.86.

The company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.25) by $0.03. The business had revenue of $26.70 million during the quarter, compared to analyst estimates of $39.31 million. Cipher Mining had a negative net margin of 585.75% and a negative return on equity of 156.28%. The business's revenue for the quarter was down 62.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.10 earnings per share.

Trending Headlines about Cipher Mining

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

• Positive Sentiment: Rosenblatt Securities maintained a Buy rating while lowering its price target to $19 from $30. The revised target still implies substantial upside from recent levels. Rosenblatt Securities recommendations
• Positive Sentiment: Cantor Fitzgerald retained an Overweight rating and reduced its target to $15 from $19, indicating that analysts continue to see long-term value despite near-term execution risks. Cantor Fitzgerald recommendations
• Positive Sentiment: Cipher Mining’s quarterly loss of $0.22 per share was narrower than the consensus loss estimate, helped in part by non-operating items. Cipher Mining Q3 earnings
• Neutral Sentiment: Keefe Bruyette cut its price target dramatically to $11 from $28, while H.C. Wainwright characterized the selloff as an attractive entry point. The divergent views highlight both the stock’s valuation potential and elevated risk. Keefe Bruyette price target
• Negative Sentiment: Third-quarter revenue was $26.7 million, well below the $39.3 million consensus estimate and down 62.8% year over year. Bitcoin-mining revenue fell 71%, while initial HPC rent of $5.9 million replaced only a portion of the lost revenue. Cipher Mining Q3 revenue results
• Negative Sentiment: Borrowings of approximately $5.6 billion produced $59 million in quarterly interest expense, increasing pressure on profitability before the HPC data halls reach full utilization. Management also pushed back on describing the company as a “neocloud,” adding uncertainty around its AI-hosting strategy. Cipher Mining earnings reaction

Analyst Ratings Changes

Several equities analysts have commented on the stock. Chardan Capital reissued a "buy" rating and issued a $32.00 price target on shares of Cipher Mining in a research report on Tuesday, August 4th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cipher Mining in a research note on Monday, September 21st. Citigroup reiterated a "market outperform" rating on shares of Cipher Mining in a research note on Monday, August 10th. Morgan Stanley decreased their target price on Cipher Mining from $54.00 to $51.50 and set an "overweight" rating for the company in a report on Monday, October 12th. Finally, JPMorgan Chase & Co. lowered their target price on Cipher Mining from $23.00 to $22.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $26.88.

Institutional Trading of Cipher Mining

A number of hedge funds and other institutional investors have recently bought and sold shares of CIFR. CoreCap Advisors LLC raised its stake in Cipher Mining by 41.7% during the 2nd quarter. CoreCap Advisors LLC now owns 1,700 shares of the company's stock worth $42,000 after acquiring an additional 500 shares in the last quarter. Abel Hall LLC boosted its stake in Cipher Mining by 3.8% in the first quarter. Abel Hall LLC now owns 20,140 shares of the company's stock valued at $259,000 after acquiring an additional 739 shares in the last quarter. Rathbones Group PLC grew its holdings in shares of Cipher Mining by 7.0% during the first quarter. Rathbones Group PLC now owns 11,495 shares of the company's stock worth $148,000 after purchasing an additional 750 shares during the last quarter. DKM Wealth Management Inc. grew its holdings in shares of Cipher Mining by 5.8% during the third quarter. DKM Wealth Management Inc. now owns 14,152 shares of the company's stock worth $224,000 after purchasing an additional 771 shares during the last quarter. Finally, Navellier & Associates Inc. grew its holdings in shares of Cipher Mining by 3.7% during the second quarter. Navellier & Associates Inc. now owns 25,230 shares of the company's stock worth $618,000 after purchasing an additional 901 shares during the last quarter. 12.26% of the stock is currently owned by institutional investors and hedge funds.

Cipher Mining Price Performance

The stock has a 50-day moving average price of $13.99 and a 200 day moving average price of $17.70. The company has a debt-to-equity ratio of 9.69, a current ratio of 3.00 and a quick ratio of 3.00. The firm has a market cap of $3.17 billion, a price-to-earnings ratio of -2.67 and a beta of 3.20.

Cipher Mining Company Profile

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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