Cleanspark (NASDAQ:CLSK) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• CleanSpark shares fell 8.4% to a new 52-week low, trading as low as $7.29 after B. Riley Financial cut its price target from $26 to $21, while maintaining a buy rating.
• Analyst sentiment remains broadly positive, with the stock carrying a “Moderate Buy” consensus and an average price target of $22.75, although Zacks downgraded it to “Strong Sell” and other firms have reduced targets.
• The company reported weaker-than-expected quarterly results, including an EPS loss of $0.89 versus an expected loss of $0.47 and revenue of $138.01 million, down 30.5% year over year.

Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report)'s share price reached a new 52-week low on Friday after B. Riley Financial lowered their price target on the stock from $26.00 to $21.00. B. Riley Financial currently has a buy rating on the stock. Cleanspark traded as low as $7.29 and last traded at $7.3850, with a volume of 11,248,920 shares changing hands. The stock had previously closed at $8.20.

Several other analysts also recently weighed in on CLSK. BTIG Research restated a "buy" rating and issued a $26.00 price target on shares of Cleanspark in a research note on Tuesday, July 14th. Canaccord Genuity Group assumed coverage on shares of Cleanspark in a report on Thursday, October 22nd. They set a "buy" rating and a $20.00 price objective on the stock. Zacks Research lowered Cleanspark from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 22nd. Weiss Ratings upgraded Cleanspark from a "sell (d-)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Finally, Cantor Fitzgerald lowered their target price on Cleanspark from $26.00 to $19.00 and set an "overweight" rating for the company in a research note on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $22.75.

Insider Buying and Selling

In other news, COO Taylor Monnig sold 25,249 shares of the business's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $13.34, for a total value of $336,821.66. Following the completion of the sale, the chief operating officer owned 236,114 shares of the company's stock, valued at approximately $3,149,760.76. The trade was a 9.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last quarter, insiders have sold 33,151 shares of company stock valued at $435,473. Insiders own 2.08% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP lifted its position in shares of Cleanspark by 81.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 14,102,777 shares of the company's stock worth $120,007,000 after buying an additional 6,323,715 shares during the period. Situational Awareness LP boosted its position in shares of Cleanspark by 648.4% during the first quarter. Situational Awareness LP now owns 12,276,139 shares of the company's stock worth $104,470,000 after buying an additional 10,635,739 shares during the period. Bank of America Corp DE increased its position in shares of Cleanspark by 49.2% in the first quarter. Bank of America Corp DE now owns 2,576,687 shares of the company's stock valued at $21,928,000 after acquiring an additional 849,865 shares during the last quarter. Intrinsic Edge Capital Management LLC increased its position in Cleanspark by 617.3% during the first quarter. Intrinsic Edge Capital Management LLC now owns 894,735 shares of the company's stock worth $7,614,000 after buying an additional 770,000 shares during the last quarter. Finally, Headlands Technologies LLC lifted its stake in shares of Cleanspark by 214.8% during the 2nd quarter. Headlands Technologies LLC now owns 512,476 shares of the company's stock worth $7,457,000 after buying an additional 349,658 shares during the last quarter. Institutional investors and hedge funds own 43.12% of the company's stock.

Cleanspark Trading Down 8.4%

The firm has a market capitalization of $1.93 billion, a P/E ratio of -1.99 and a beta of 3.84. The company has a debt-to-equity ratio of 2.34, a current ratio of 5.91 and a quick ratio of 5.91. The business's 50-day moving average is $11.63 and its 200 day moving average is $12.37.

Cleanspark (NASDAQ:CLSK - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.89) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.42). The company had revenue of $138.01 million for the quarter, compared to analyst estimates of $142.37 million. Cleanspark had a negative net margin of 146.90% and a negative return on equity of 18.63%. The firm's revenue was down 30.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.90 EPS. As a group, analysts anticipate that Cleanspark, Inc. will post -1.40 EPS for the current fiscal year.

About Cleanspark

CleanSpark, Inc is a bitcoin mining and digital infrastructure company headquartered in Henderson, Nevada. The company develops and operates data centers that use specialized computing equipment to validate transactions and secure the Bitcoin network.

CleanSpark focuses on acquiring, building and managing bitcoin mining facilities in the United States. Its operations have included sites in Georgia, Mississippi, Tennessee and Wyoming, with an emphasis on energy management, operational efficiency and access to reliable power.

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