TeraWulf (NASDAQ:WULF) Shares Up 6.8% - Here's Why

Key Points

• TeraWulf shares rose 6.8% to about $17.24 in Friday’s mid-day trading, despite volume running 65% below the average session.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $34.21; recent targets range from $30 to $46.
• The company’s latest quarter showed significant weakness: TeraWulf reported a $1.94 loss per share versus the expected $0.24 loss, revenue fell 6% year over year, and insiders sold roughly $8 million of stock over the past 90 days.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s share price shot up 6.8% during mid-day trading on Friday . The company traded as high as $17.30 and last traded at $17.2370. Approximately 11,057,476 shares were traded during trading, a decline of 65% from the average session volume of 31,394,707 shares. The stock had previously closed at $16.14.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Needham & Company LLC raised their price target on shares of TeraWulf from $28.00 to $33.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Rosenblatt Securities reaffirmed a "buy" rating and set a $30.00 price objective on shares of TeraWulf in a research report on Friday, August 21st. Cantor Fitzgerald reiterated an "overweight" rating and issued a $37.00 price objective on shares of TeraWulf in a research note on Wednesday, July 15th. Sanford C. Bernstein started coverage on TeraWulf in a report on Wednesday, June 3rd. They issued an "outperform" rating and a $46.00 target price for the company. Finally, Lucid Cap Mkts raised TeraWulf to a "strong-buy" rating in a research note on Wednesday, May 27th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $34.21.

TeraWulf Stock Performance

The firm has a 50 day moving average of $17.79 and a two-hundred day moving average of $19.74. The company has a debt-to-equity ratio of 27.25, a current ratio of 0.75 and a quick ratio of 0.75. The stock has a market cap of $8.61 billion, a PE ratio of -3.94 and a beta of 3.70.

TeraWulf (NASDAQ:WULF - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($1.94) EPS for the quarter, missing the consensus estimate of ($0.24) by ($1.70). The company had revenue of $44.77 million during the quarter, compared to analysts' expectations of $46.00 million. TeraWulf had a negative net margin of 1,179.94% and a negative return on equity of 458.62%. The business's revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.05) earnings per share. Research analysts predict that TeraWulf Inc. will post -0.95 EPS for the current fiscal year.

Insider Buying and Selling at TeraWulf

In other TeraWulf news, Director Walter Carter sold 130,626 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $15.14, for a total value of $1,977,677.64. Following the completion of the transaction, the director owned 229,090 shares in the company, valued at $3,468,422.60. This represents a 36.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Paul Prager sold 137,500 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $17.06, for a total value of $2,345,750.00. Following the transaction, the chief executive officer directly owned 3,807,552 shares in the company, valued at approximately $64,956,837.12. The trade was a 3.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 405,626 shares of company stock worth $7,980,928 over the last 90 days. Corporate insiders own 15.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WULF. CoreCap Advisors LLC lifted its stake in TeraWulf by 106.7% in the second quarter. CoreCap Advisors LLC now owns 1,447 shares of the company's stock valued at $36,000 after buying an additional 747 shares during the last quarter. Ameritas Advisory Services LLC acquired a new position in shares of TeraWulf in the 2nd quarter valued at $41,000. Advisory Services Network LLC acquired a new position in shares of TeraWulf in the 3rd quarter valued at $29,000. First United Bank & Trust acquired a new position in shares of TeraWulf in the 1st quarter valued at $37,000. Finally, Vermillion Wealth Management Inc. raised its position in TeraWulf by 1,191.0% in the 4th quarter. Vermillion Wealth Management Inc. now owns 2,595 shares of the company's stock valued at $30,000 after purchasing an additional 2,394 shares during the last quarter. Hedge funds and other institutional investors own 62.49% of the company's stock.

TeraWulf Company Profile

TeraWulf Inc NASDAQ: WULF develops and operates digital-asset mining and high-performance computing infrastructure. The company has focused primarily on bitcoin mining while expanding its data-center platform to support artificial intelligence, cloud computing and other high-density computing applications.

TeraWulf emphasizes access to low-cost, predominantly zero-carbon energy and designs, builds and operates energy-intensive data-center facilities. Its operations have included the Lake Mariner facility in New York and the Nautilus Cryptomine facility in Pennsylvania, which was developed in collaboration with Cumulus Coin.

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