Cipher Mining (NASDAQ:CIFR) Stock Price Down 9.3% - Should You Sell?

Key Points

• Cipher Mining shares fell 9.3% to about $8.05, with nearly 23 million shares traded. The stock is well below its 50-day and 200-day moving averages of $14.53 and $17.85.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and a $28.65 price target. Recent targets range from $18 at Rothschild & Co Redburn to $25 at Wells Fargo, while UBS initiated coverage with a $23 target.
• The company reported weak quarterly results, including 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 posted deeply negative margins and return on equity, highlighting significant financial risks.

Cipher Mining Inc. (NASDAQ:CIFR - Get Free Report) shares fell 9.3% during trading on Thursday. The stock traded as low as $8.10 and last traded at $8.0480. 22,941,745 shares changed hands during trading, a decline of 26% from the average session volume of 30,899,260 shares. The stock had previously closed at $8.87.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on CIFR shares. UBS Group began coverage on Cipher Mining in a research note on Wednesday, September 23rd. They issued a "buy" rating and a $23.00 price objective for the company. Rothschild & Co Redburn assumed coverage on shares of Cipher Mining in a research report on Monday, September 21st. They set a "neutral" rating and a $18.00 target price on the stock. Citigroup reaffirmed a "market outperform" rating on shares of Cipher Mining in a report on Monday, August 10th. Freedom Capital upgraded shares of Cipher Mining to a "hold" rating in a research report on Friday, September 18th. Finally, Wells Fargo & Company assumed coverage on shares of Cipher Mining in a research note on Thursday, September 17th. They set an "overweight" rating and a $25.00 price target for the company. One 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's stock. Based on data from MarketBeat, Cipher Mining presently has a consensus rating of "Moderate Buy" and a consensus price target of $28.65.

Cipher Mining Stock Down 9.4%

The business has a 50-day simple moving average of $14.53 and a two-hundred day simple moving average of $17.85. 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 company has a market capitalization of $3.33 billion, a price-to-earnings ratio of -2.81 and a beta of 3.20.

Cipher Mining (NASDAQ:CIFR - Get Free Report) last released 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). Cipher Mining had a negative net margin of 585.75% and a negative return on equity of 156.28%. The company had revenue of $24.84 million during the quarter, compared to analyst estimates of $31.86 million. During the same period in the previous year, the firm posted ($0.12) EPS. As a group, equities analysts predict that Cipher Mining Inc. will post -1.36 EPS for the current year.

Institutional Trading of Cipher Mining

Several hedge funds and other institutional investors have recently made changes to their positions in CIFR. Wellington Management Group LLP grew its holdings in Cipher Mining by 567.1% in the 2nd quarter. Wellington Management Group LLP now owns 3,985,806 shares of the company's stock valued at $97,652,000 after buying an additional 3,388,359 shares during the period. Janus Henderson Group PLC boosted its stake in shares of Cipher Mining by 1.9% in the first quarter. Janus Henderson Group PLC now owns 4,373,982 shares of the company's stock valued at $56,292,000 after purchasing an additional 81,192 shares during the period. Moore Capital Management LP acquired a new stake in Cipher Mining during the 2nd quarter valued at approximately $35,077,000. Jennison Associates LLC increased its position in shares of Cipher Mining by 48.7% in the 1st quarter. Jennison Associates LLC now owns 2,519,281 shares of the company's stock worth $32,423,000 after purchasing an additional 824,618 shares during the last quarter. Finally, Renaissance Technologies LLC bought a new stake in shares of Cipher Mining in the 1st quarter valued at approximately $24,486,000. Hedge funds and other institutional investors own 12.26% of the company's stock.

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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