Core Scientific (NASDAQ:CORZ) Shares Gap Down - Here's Why

Key Points

• Core Scientific shares fell sharply: The stock opened at $13.11 versus its prior close of $14.24 and later traded near $12.93. The article does not identify a specific catalyst for the decline.
• Analyst sentiment remains broadly positive: The consensus rating is “Moderate Buy,” with a $31.28 average price target; 18 of 21 analysts rate the stock Buy or Strong Buy.
• Core Scientific operates data centers focused on bitcoin mining and is expanding into hosting high-performance computing and AI workloads.

Core Scientific, Inc. (NASDAQ:CORZ - Get Free Report)'s share price gapped down prior to trading on Wednesday. The stock had previously closed at $14.24, but opened at $13.11. Core Scientific shares last traded at $12.9260, with a volume of 3,974,783 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Compass Point restated a "buy" rating and set a $36.00 target price on shares of Core Scientific in a research report on Wednesday, July 29th. Needham & Company LLC raised their price objective on shares of Core Scientific from $29.00 to $35.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Canaccord Genuity Group restated a "buy" rating and issued a $36.00 price objective on shares of Core Scientific in a research note on Thursday, October 15th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $39.00 target price on shares of Core Scientific in a report on Wednesday, October 14th. Finally, Capital One Financial set a $33.00 target price on shares of Core Scientific in a research note on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $31.28.

Core Scientific Stock Performance

The stock's 50-day moving average price is $16.02 and its 200-day moving average price is $19.58. The company has a market capitalization of $4.10 billion, a price-to-earnings ratio of -2.89 and a beta of 5.56.

Insider Buying and Selling

In other Core Scientific news, insider Todd M. Duchene sold 10,000 shares of Core Scientific stock in a transaction dated Monday, October 26th. The stock was sold at an average price of $13.56, for a total value of $135,600.00. Following the completion of the sale, the insider owned 1,133,286 shares in the company, valued at $15,367,358.16. The trade was a 0.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Elizabeth Crain purchased 6,000 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were bought at an average cost of $18.33 per share, with a total value of $109,980.00. Following the transaction, the director directly owned 71,348 shares of the company's stock, valued at $1,307,808.84. The trade was a 9.18% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders purchased 19,000 shares of company stock worth $342,290 and sold 90,000 shares worth $1,500,800. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of Core Scientific

Several large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in Core Scientific in the second quarter worth approximately $719,649,000. Bank of America Corp DE lifted its position in shares of Core Scientific by 412.5% during the 1st quarter. Bank of America Corp DE now owns 4,806,363 shares of the company's stock valued at $71,903,000 after acquiring an additional 3,868,535 shares during the last quarter. Apollo Management Holdings L.P. acquired a new stake in shares of Core Scientific during the 2nd quarter valued at $115,671,000. Fifth Third Bancorp acquired a new position in shares of Core Scientific in the 1st quarter worth $59,802,000. Finally, Avala Global LP acquired a new position in shares of Core Scientific in the 2nd quarter worth $101,729,000.

Core Scientific Company Profile

Core Scientific, Inc is a digital infrastructure company that develops and operates data centers for high-performance computing. The company has historically focused on bitcoin mining, using specialized computing equipment and supporting infrastructure to validate transactions on the Bitcoin network. It also provides hosting and infrastructure services for other digital asset miners.

Core Scientific is expanding its business toward hosting high-performance computing and artificial intelligence workloads.

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