TeraWulf (NASDAQ:WULF) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded TeraWulf from “hold” to “strong sell,” even as the broader analyst view remains more positive with a consensus rating of “Moderate Buy” and a $34.25 price target.
• The company’s latest earnings disappointed, with quarterly EPS of -$1.01 versus expectations of -$0.19 and revenue of $34.01 million slightly below estimates. TeraWulf also reported weak profitability metrics, including a negative net margin and return on equity.
• Insider selling and high volatility stand out: CEO Paul B. Prager sold 166,650 shares in a pre-arranged transaction, and the stock has a beta of 3.73, indicating elevated price swings.

TeraWulf (NASDAQ:WULF - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other brokerages have also issued reports on WULF. Compass Point set a $40.00 price objective on shares of TeraWulf in a report on Monday. Sanford C. Bernstein assumed coverage on shares of TeraWulf in a research report on Wednesday, June 3rd. They issued an "outperform" rating and a $46.00 price target for the company. Morgan Stanley raised their price target on shares of TeraWulf from $66.50 to $72.00 and gave the company an "overweight" rating in a research note on Wednesday. B. Riley Financial lifted their price target on shares of TeraWulf from $27.00 to $32.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of TeraWulf in a research note on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, TeraWulf presently has a consensus rating of "Moderate Buy" and a consensus price target of $34.25.

TeraWulf Price Performance

Shares of WULF opened at $21.97 on Thursday. TeraWulf has a 12-month low of $4.64 and a 12-month high of $29.84. The business has a 50-day simple moving average of $24.59 and a two-hundred day simple moving average of $18.65. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 33.00. The stock has a market cap of $10.89 billion, a PE ratio of -8.86 and a beta of 3.73.

TeraWulf (NASDAQ:WULF - Get Free Report) last announced its quarterly earnings results on Friday, May 8th. The company reported ($1.01) EPS for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.82). The firm had revenue of $34.01 million for the quarter, compared to analyst estimates of $34.69 million. TeraWulf had a negative net margin of 611.46% and a negative return on equity of 305.07%. The business's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.16) earnings per share. Analysts anticipate that TeraWulf will post -1.09 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Paul B. Prager sold 166,650 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $24.43, for a total value of $4,071,259.50. Following the sale, the chief executive officer directly owned 4,249,202 shares of the company's stock, valued at approximately $103,808,004.86. This represents a 3.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 520,850 shares of company stock valued at $12,221,864. 15.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On TeraWulf

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of TeraWulf by 37.4% in the 4th quarter. Vanguard Group Inc. now owns 33,643,009 shares of the company's stock worth $386,558,000 after acquiring an additional 9,162,958 shares in the last quarter. Oppenheimer & Co. Inc. boosted its position in shares of TeraWulf by 45.1% during the 4th quarter. Oppenheimer & Co. Inc. now owns 140,101 shares of the company's stock valued at $1,610,000 after purchasing an additional 43,574 shares in the last quarter. Pictet Asset Management Holding SA grew its stake in TeraWulf by 178.8% during the fourth quarter. Pictet Asset Management Holding SA now owns 151,005 shares of the company's stock worth $1,735,000 after purchasing an additional 96,843 shares during the period. GeoSphere Capital Management LLC acquired a new stake in TeraWulf during the fourth quarter worth approximately $2,872,000. Finally, Fortress Investment Group LLC bought a new stake in TeraWulf in the third quarter worth approximately $1,713,000. Institutional investors own 62.49% of the company's stock.

About TeraWulf

TeraWulf, Inc NASDAQ: WULF is a digital asset infrastructure company focused on the development and operation of zero-carbon bitcoin mining facilities. The company integrates sustainable power generation with high-density data center technologies to deliver environmentally responsible digital asset mining services. Its core business revolves around designing, building and operating large-scale mining projects powered exclusively by renewable or emissions-free energy sources.

One of TeraWulf’s flagship projects is “Project Nautilus,” located in Tompkins County, New York, which harnesses hydroelectric power sourced from the New York State Electric & Gas (NYSEG) grid.

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