Cleanspark (NASDAQ:CLSK) Stock Price Up 10.2% - Here's Why

Key Points

• CleanSpark shares jumped 10.2% to about $7.88 in midday trading, although volume was 83% below the average session level.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and a $22.65 consensus price target, despite some target reductions and a recent “strong sell” downgrade.
• The company’s latest quarter fell short of expectations: it reported a $0.89 per-share loss and $138.0 million in revenue, while revenue declined 30.5% year over year.

Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report)'s stock price was up 10.2% during mid-day trading on Tuesday. The stock traded as high as $7.89 and last traded at $7.8810. Approximately 3,790,090 shares were traded during trading, a decline of 83% from the average session volume of 21,911,102 shares. The stock had previously closed at $7.15.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CLSK. HC Wainwright reaffirmed a "buy" rating on shares of Cleanspark in a report on Friday, August 7th. B. Riley Financial cut their target price on shares of Cleanspark from $26.00 to $21.00 and set a "buy" rating on the stock in a research report on Friday. Weiss Ratings upgraded shares of Cleanspark from a "sell (d-)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Chardan Capital reiterated a "buy" rating and set a $21.00 price target on shares of Cleanspark in a report on Monday, August 10th. Finally, Zacks Research lowered shares of Cleanspark from a "hold" rating to a "strong sell" rating in a report on Thursday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $22.65.

Cleanspark Price Performance

The firm has a market capitalization of $2.05 billion, a P/E ratio of -2.11 and a beta of 3.84. The company has a fifty day moving average of $11.44 and a 200 day moving average of $12.32. The company has a debt-to-equity ratio of 2.34, a current ratio of 5.91 and a quick ratio of 5.91.

Cleanspark (NASDAQ:CLSK - Get Free Report) last issued its quarterly 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 return on equity of 18.63% and a negative net margin of 146.90%. The firm had revenue of $138.01 million during the quarter, compared to analyst estimates of $142.37 million. During the same quarter last year, the firm posted $0.90 EPS. The firm's revenue for the quarter was down 30.5% on a year-over-year basis. Sell-side analysts predict that Cleanspark, Inc. will post -1.40 earnings per share for the current year.

Insider Buying and Selling

In other Cleanspark news, COO Taylor Monnig sold 3,335 shares of the stock in a transaction dated Thursday, October 1st. The stock was 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 approximately $4,152,867.30. This trade represents a 0.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold a total of 33,151 shares of company stock worth $435,473 over the last quarter. Corporate insiders own 2.08% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP lifted its holdings in shares of Cleanspark by 81.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 14,102,777 shares of the company's stock worth $120,007,000 after purchasing an additional 6,323,715 shares in the last quarter. Situational Awareness LP increased its stake in Cleanspark by 648.4% during the 1st quarter. Situational Awareness LP now owns 12,276,139 shares of the company's stock valued at $104,470,000 after purchasing an additional 10,635,739 shares in the last quarter. Bank of America Corp DE raised its holdings in Cleanspark by 49.2% during the first quarter. Bank of America Corp DE now owns 2,576,687 shares of the company's stock worth $21,928,000 after buying an additional 849,865 shares during the last quarter. Intrinsic Edge Capital Management LLC raised 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 buying an additional 770,000 shares during the last quarter. Finally, Headlands Technologies LLC raised its holdings in Cleanspark by 214.8% during the second 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. 43.12% of the stock is owned by institutional investors and hedge funds.

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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