TeraWulf (NASDAQ:WULF) Stock Falls 4.6% - Here's Why

Key Points

• TeraWulf shares fell 4.6% to about $15.53 in Friday’s midday trading, with volume roughly 75% below the average session level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $33.33, although targets range from $33 to $62.50 and one firm maintains a sell rating.
• The company’s latest quarterly results were weak: TeraWulf reported a $1.94 loss per share versus the expected $0.24 loss, revenue below estimates, and sharply negative profitability metrics. Recent insider activity was also mixed, with substantially more shares sold than purchased over the past 90 days.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s stock price traded down 4.6% during mid-day trading on Friday. The stock traded as low as $15.56 and last traded at $15.5340. Approximately 7,979,200 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 31,309,859 shares. The stock had previously closed at $16.29.

Analyst Upgrades and Downgrades

WULF has been the subject of a number of recent analyst reports. Needham & Company LLC upped their price objective on TeraWulf from $28.00 to $33.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of TeraWulf in a research note on Monday. Citigroup began coverage on shares of TeraWulf in a research note on Monday, June 29th. They issued a "buy" rating and a $36.00 target price for the company. Cantor Fitzgerald reissued an "overweight" rating and issued a $37.00 price target on shares of TeraWulf in a report on Wednesday, July 15th. Finally, Morgan Stanley dropped their price objective on TeraWulf from $72.00 to $62.50 and set an "overweight" rating on the stock in a research note on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $33.33.

TeraWulf Stock Down 3.9%

The firm has a market capitalization of $7.81 billion, a P/E ratio of -3.59 and a beta of 3.70. The company has a debt-to-equity ratio of 27.25, a quick ratio of 0.75 and a current ratio of 0.75. The firm's 50-day moving average is $16.86 and its 200 day moving average is $19.75.

TeraWulf (NASDAQ:WULF - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($1.94) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($1.70). The firm had revenue of $44.77 million during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.05) EPS. As a group, equities research analysts predict that TeraWulf Inc. will post -0.95 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Paul Prager sold 137,500 shares of the firm's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $17.06, for a total value of $2,345,750.00. Following the completion of the transaction, the chief executive officer owned 3,807,552 shares of the company's stock, valued at approximately $64,956,837.12. This trade represents a 3.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Bucella acquired 6,085 shares of TeraWulf stock in a transaction dated Tuesday, September 15th. The shares were acquired at an average price of $14.79 per share, with a total value of $89,997.15. Following the completion of the purchase, the director owned 350,789 shares in the company, valued at approximately $5,188,169.31. The trade was a 1.77% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 11,968 shares of company stock worth $189,962 and sold 405,626 shares worth $7,980,928. 15.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On TeraWulf

Several large investors have recently made changes to their positions in WULF. BlueCrest Capital Management Ltd acquired a new position in TeraWulf during the second quarter worth $11,945,000. WINTON GROUP Ltd acquired a new stake in TeraWulf in the second quarter valued at $5,550,000. Integrated Wealth Concepts LLC grew its position in shares of TeraWulf by 8.0% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 48,782 shares of the company's stock valued at $1,205,000 after acquiring an additional 3,617 shares during the period. IFP Advisors Inc grew its position in shares of TeraWulf by 75.9% in the 2nd quarter. IFP Advisors Inc now owns 15,124 shares of the company's stock valued at $374,000 after acquiring an additional 6,524 shares during the period. Finally, Baird Financial Group Inc. acquired a new position in shares of TeraWulf during the 2nd quarter worth about $540,000. Institutional investors and hedge funds own 62.49% of the company's stock.

About TeraWulf

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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