Cleanspark (NASDAQ:CLSK) Stock Price Down 4.7% - Time to Sell?

Key Points

• CleanSpark shares fell 4.7% to roughly $13.59 in low-volume trading, while the stock remains highly volatile with a beta of 3.84.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $23.88, well above the current price.
• The company’s latest quarter was weak: it missed earnings and revenue estimates, reported a 146.9% negative net margin, and revenue declined 30.5% year over year. An insider also sold shares recently, although institutional investors have been increasing their positions.

Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report) dropped 4.7% during mid-day trading on Friday. The stock traded as low as $13.77 and last traded at $13.5920. Approximately 2,283,645 shares changed hands during trading, a decline of 90% from the average daily volume of 22,658,719 shares. The stock had previously closed at $14.26.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Chardan Capital reiterated a "buy" rating and issued a $21.00 target price on shares of Cleanspark in a research note on Monday, August 10th. HC Wainwright reissued a "buy" rating on shares of Cleanspark in a research report on Friday, August 7th. Zacks Research upgraded Cleanspark from a "strong sell" rating to a "hold" rating in a research note on Friday, July 10th. Citizens Jmp started coverage on Cleanspark in a research report on Wednesday, June 24th. They issued a "market outperform" rating and a $27.00 price objective for the company. Finally, Cantor Fitzgerald reissued an "overweight" rating and set a $26.00 target price on shares of Cleanspark in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $23.88.

Cleanspark Stock Performance

The firm has a market cap of $3.56 billion, a price-to-earnings ratio of -3.66 and a beta of 3.84. The company has a debt-to-equity ratio of 2.34, a quick ratio of 2.11 and a current ratio of 5.91. The firm's 50 day moving average is $13.09 and its 200-day moving average is $13.13.

Cleanspark (NASDAQ:CLSK - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.89) earnings per share for the quarter, missing the consensus estimate of ($0.47) by ($0.42). The company had revenue of $138.01 million during the quarter, compared to the consensus estimate of $142.37 million. Cleanspark had a negative net margin of 146.90% and a negative return on equity of 18.63%. The company's revenue for the quarter was down 30.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.90 earnings per share. Sell-side analysts anticipate that Cleanspark, Inc. will post -1.4 earnings per share for the current fiscal year.

Insider Transactions at Cleanspark

In related news, COO Taylor Monnig sold 25,249 shares of the firm's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $13.34, for a total value of $336,821.66. Following the sale, the chief operating officer directly owned 236,114 shares of the company's stock, valued at $3,149,760.76. This trade represents a 9.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders have sold 29,816 shares of company stock worth $394,352 in the last 90 days. Corporate insiders own 2.08% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP boosted its stake in Cleanspark by 81.3% during the first quarter. Dimensional Fund Advisors LP now owns 14,102,777 shares of the company's stock worth $120,007,000 after acquiring an additional 6,323,715 shares in the last quarter. 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 valued at $104,470,000 after buying an additional 10,635,739 shares during the last quarter. Bank of America Corp DE lifted its stake in Cleanspark by 49.2% during the 1st 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 in the last quarter. Intrinsic Edge Capital Management LLC boosted its holdings 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 purchasing an additional 770,000 shares during the last quarter. Finally, Headlands Technologies LLC grew its holdings in shares of Cleanspark by 214.8% in the second quarter. Headlands Technologies LLC now owns 512,476 shares of the company's stock valued at $7,457,000 after acquiring an additional 349,658 shares in the last quarter. 43.12% of the stock is owned by institutional investors and hedge funds.

About Cleanspark

CleanSpark, Inc NASDAQ: CLSK is a bitcoin mining and energy technology company headquartered in Henderson, Nevada. The company owns and operates data centers that use specialized computing equipment to validate transactions on the Bitcoin network and earn bitcoin rewards.

CleanSpark focuses on developing and expanding mining infrastructure, with operations in the United States, including facilities in Georgia, Mississippi, Tennessee and Wyoming. Its activities include acquiring and deploying mining equipment, managing data-center operations and securing reliable, cost-effective power for its facilities.

The company historically developed software and energy-management solutions before shifting its primary focus toward bitcoin mining.

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