Core Scientific (NASDAQ:CORZ) Shares Gap Up - Time to Buy?

Key Points

• Core Scientific shares opened sharply higher, rising from a previous close of $16.88 to $17.99 before trading near $16.93. The stock remains below its 50-day and 200-day moving averages of $19.81 and $21.00, respectively.
• Analysts are broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $31.96, although one firm maintains a sell rating.
• The company reported a significant quarterly EPS loss of $3.32, missing estimates by $3.26, despite revenue of $164.2 million exceeding forecasts. Recent insider activity was mixed, with more shares sold than bought over the past 90 days.

Core Scientific, Inc. (NASDAQ:CORZ - Get Free Report) shares gapped up prior to trading on Thursday . The stock had previously closed at $16.88, but opened at $17.99. Core Scientific shares last traded at $16.9250, with a volume of 1,614,898 shares changing hands.

Wall Street Analyst Weigh In

CORZ has been the subject of a number of analyst reports. Sanford C. Bernstein reissued an "outperform" rating and set a $32.00 price objective on shares of Core Scientific in a research report on Wednesday, June 3rd. Loop Capital set a $40.00 target price on shares of Core Scientific in a report on Friday, June 12th. Wolfe Research reiterated a "buy" rating on shares of Core Scientific in a research note on Wednesday, July 29th. Capital One Financial set a $33.00 price target on shares of Core Scientific in a report on Thursday, July 30th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Core Scientific in a research note on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, one has 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 an average target price of $31.96.

Core Scientific Price Performance

The firm's 50 day simple moving average is $19.81 and its 200-day simple moving average is $21.00. The company has a market cap of $5.64 billion, a price-to-earnings ratio of -3.95 and a beta of 5.48.

Core Scientific (NASDAQ:CORZ - Get Free Report) last posted its earnings results on Tuesday, July 28th. The company reported ($3.32) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($3.26). The firm had revenue of $164.20 million during the quarter, compared to analyst estimates of $144.83 million. On average, analysts forecast that Core Scientific, Inc. will post -1.36 EPS for the current year.

Insider Activity at Core Scientific

In other news, insider Todd M. Duchene sold 10,000 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $18.67, for a total transaction of $186,700.00. Following the completion of the sale, the insider owned 1,217,896 shares in the company, valued at approximately $22,738,118.32. This represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Eric Weiss bought 7,000 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average price of $19.19 per share, with a total value of $134,330.00. Following the purchase, the director directly owned 259,262 shares of the company's stock, valued at approximately $4,975,237.78. This trade represents a 2.77% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 90,000 shares of company stock worth $1,996,600 in the last 90 days. 1.70% of the stock is owned by insiders.

Institutional Trading of Core Scientific

Hedge funds have recently added to or reduced their stakes in the stock. Engineers Gate Manager LP purchased a new position in shares of Core Scientific in the 2nd quarter valued at approximately $1,671,000. Squarepoint Ops LLC lifted its holdings in shares of Core Scientific by 64.1% during the second quarter. Squarepoint Ops LLC now owns 2,686,177 shares of the company's stock worth $68,739,000 after purchasing an additional 1,049,678 shares during the period. Arizona State Retirement System grew its position in Core Scientific by 2.3% in the 2nd quarter. Arizona State Retirement System now owns 69,666 shares of the company's stock valued at $1,783,000 after buying an additional 1,533 shares during the last quarter. Nykredit A S purchased a new position in Core Scientific in the 2nd quarter valued at $263,000. Finally, Parkside Financial Bank & Trust increased its stake in Core Scientific by 1,371.3% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,177 shares of the company's stock valued at $30,000 after buying an additional 1,097 shares during the period.

About Core Scientific

Core Scientific, Inc NASDAQ: CORZ is a digital infrastructure company that develops and operates data centers for high-performance computing. Its business has historically centered on large-scale bitcoin mining, including the deployment and operation of specialized computing equipment and supporting power, networking and facility infrastructure.

The company also provides hosting and colocation services for digital asset miners and other high-performance computing customers. Core Scientific has increasingly focused on expanding its data center platform for artificial intelligence and other compute-intensive workloads, including infrastructure designed to support graphics processing unit (GPU) deployments.

Founded in 2017, Core Scientific operates data center facilities in the United States and emerged from Chapter 11 bankruptcy protection in January 2024.

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