Cleanspark (NASDAQ:CLSK) Stock Price Down 5.8% - Here's Why

Key Points

• CleanSpark shares fell 5.8% to $10.85 on significantly lower-than-average volume, while the stock remains highly volatile with a beta of 3.84.
• Despite the decline, analysts remain broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $23.88, with several firms assigning targets between $21 and $26.
• The company’s latest quarter showed mounting financial pressure, including an EPS loss of $0.89 versus the expected $0.47 loss, revenue down 30.5% year over year, and a negative net margin of 146.9%.

Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report)'s stock price traded down 5.8% on Thursday. The company traded as low as $10.80 and last traded at $10.85. 4,761,214 shares traded hands during trading, a decline of 79% from the average session volume of 22,305,309 shares. The stock had previously closed at $11.52.

Analysts Set New Price Targets

Several equities research analysts have recently commented on CLSK shares. Needham & Company LLC upped their target price on Cleanspark from $18.00 to $23.00 and gave the company a "buy" rating in a report on Wednesday, July 15th. Citigroup began coverage on Cleanspark in a research note on Wednesday, June 24th. They issued an "outperform" rating on the stock. Zacks Research upgraded Cleanspark from a "strong sell" rating to a "hold" rating in a report on Friday, July 10th. BTIG Research reaffirmed a "buy" rating and set a $26.00 price objective on shares of Cleanspark in a research note on Tuesday, July 14th. Finally, Chardan Capital reiterated a "buy" rating and issued a $21.00 target price on shares of Cleanspark in a report on Monday, August 10th. 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 given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $23.88.

Cleanspark Price Performance

The stock has a 50 day moving average of $12.84 and a two-hundred day moving average of $13.32. The company has a debt-to-equity ratio of 2.34, a quick ratio of 5.91 and a current ratio of 5.91. The firm has a market capitalization of $2.73 billion, a P/E ratio of -2.82 and a beta of 3.84.

Cleanspark (NASDAQ:CLSK - Get Free Report) last posted 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). Cleanspark had a negative net margin of 146.90% and a negative return on equity of 18.63%. The firm had revenue of $138.01 million during the quarter, compared to analyst estimates of $142.37 million. During the same quarter in the previous year, the business posted $0.90 earnings per share. The business's quarterly revenue was down 30.5% compared to the same quarter last year. Sell-side analysts predict that Cleanspark, Inc. will post -1.4 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Taylor Monnig sold 25,249 shares of the company's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $13.34, for a total value of $336,821.66. Following the completion of the transaction, the chief operating officer directly owned 236,114 shares in the company, valued at approximately $3,149,760.76. This represents a 9.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last ninety days, insiders sold 33,151 shares of company stock valued at $435,473. Corporate insiders own 2.08% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Congress Asset Management Co. increased its holdings in shares of Cleanspark by 21.3% in the third quarter. Congress Asset Management Co. now owns 508,982 shares of the company's stock valued at $6,556,000 after purchasing an additional 89,240 shares in the last quarter. CX Institutional lifted its holdings in Cleanspark by 4.3% during the 3rd quarter. CX Institutional now owns 19,462 shares of the company's stock worth $251,000 after buying an additional 804 shares in the last quarter. Versant Capital Management Inc lifted its holdings in Cleanspark by 229.0% during the 3rd quarter. Versant Capital Management Inc now owns 4,939 shares of the company's stock worth $64,000 after buying an additional 3,438 shares in the last quarter. Sequoia Financial Advisors LLC bought a new position in Cleanspark in the 2nd quarter valued at $188,000. Finally, WINTON GROUP Ltd boosted its position in Cleanspark by 58.2% in the 2nd quarter. WINTON GROUP Ltd now owns 115,834 shares of the company's stock valued at $1,685,000 after buying an additional 42,634 shares during the last quarter. Institutional investors own 43.12% of the company's stock.

Cleanspark Company Profile

CleanSpark, Inc is a U.S.-based bitcoin mining and energy technology company traded on the Nasdaq under the symbol CLSK. Its primary business is operating data centers that use specialized computing equipment to validate transactions on the Bitcoin network and earn bitcoin as a reward.

The company develops and operates its mining infrastructure in the United States, with facilities and operations located across several states. CleanSpark focuses on expanding and optimizing its data-center capacity, managing energy usage, and securing power resources to support its mining activities.

Before emphasizing bitcoin mining, CleanSpark was associated with energy-management and distributed-energy technologies designed to help businesses and communities improve energy efficiency and resilience.

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