Cleanspark (NASDAQ:CLSK) Shares Gap Down After Analyst Downgrade

Key Points

• CleanSpark shares fell sharply after Keefe, Bruyette & Woods cut its rating from Outperform to Market Perform; the stock opened at $7.15, down from its prior close of $8.15. The firm set a $9.50 price target.
• Despite the downgrade, analysts’ overall consensus remains Moderate Buy, with an average price target of $21.46.
• In its latest reported quarter, CleanSpark missed earnings and revenue expectations: it posted a loss of $0.89 per share, while revenue declined 30.5% year over year to $138.01 million.

Cleanspark, Inc. (NASDAQ:CLSK - 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 $8.15, but opened at $7.15. Keefe, Bruyette & Woods now has a $9.50 price target on the stock. Cleanspark shares last traded at $7.2590, with a volume of 8,253,616 shares trading hands.

A number of other research analysts have also recently weighed in on the company. Cantor Fitzgerald dropped their price target on Cleanspark from $26.00 to $19.00 and set an "overweight" rating for the company in a research report on Friday, October 16th. HC Wainwright reaffirmed a "buy" rating on shares of Cleanspark in a research note on Friday, August 7th. BTIG Research reiterated a "buy" rating and issued a $26.00 price objective on shares of Cleanspark in a research report on Tuesday, July 14th. Needham & Company LLC increased their price objective on shares of Cleanspark from $18.00 to $23.00 and gave the company a "buy" rating in a research note on Wednesday, July 15th. Finally, Chardan Capital restated a "buy" rating and set a $21.00 target price on shares of Cleanspark in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $21.46.

Insider Transactions at Cleanspark

In other Cleanspark news, COO Taylor Monnig sold 3,335 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $12.33, for a total transaction of $41,120.55. Following the completion of the sale, the chief operating officer directly owned 336,810 shares in the company, valued at $4,152,867.30. The trade was a 0.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 33,151 shares of company stock worth $435,473 over the last ninety days. 2.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cleanspark

A number of institutional investors have recently made changes to their positions in CLSK. StoneX Group Inc. acquired a new position in Cleanspark during the third quarter valued at approximately $124,000. Kestra Advisory Services LLC raised its position in shares of Cleanspark by 30.9% in the third quarter. Kestra Advisory Services LLC now owns 23,217 shares of the company's stock valued at $299,000 after purchasing an additional 5,486 shares during the period. Compass Financial Management LLC lifted its stake in shares of Cleanspark by 67.1% in the third quarter. Compass Financial Management LLC now owns 210,179 shares of the company's stock worth $2,707,000 after buying an additional 84,377 shares during the last quarter. Integrity Alliance LLC. acquired a new stake in shares of Cleanspark in the third quarter worth $828,000. Finally, Guardian Partners Inc. acquired a new stake in shares of Cleanspark in the third quarter worth $125,000. 43.12% of the stock is owned by institutional investors and hedge funds.

Cleanspark Price Performance

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 stock's 50 day moving average price is $11.36 and its two-hundred day moving average price is $12.30. The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of -1.92 and a beta of 3.66.

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