TeraWulf (NASDAQ:WULF) Shares Down 8.2% - Here's What Happened

Key Points

• TeraWulf shares fell 8.2% in midday trading, dropping to as low as $19.40 after closing at $20.89 the prior session.
• Despite the pullback, Wall Street sentiment remains mostly bullish: analysts on average rate the stock “Moderate Buy” with a $34.25 price target, and several firms recently raised targets or issued buy ratings.
• The company continues to post weak profitability and heavy leverage, with its latest quarter showing a larger-than-expected loss, and the CEO recently sold shares under a pre-arranged trading plan.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s share price dropped 8.2% during mid-day trading on Tuesday . The company traded as low as $19.40 and last traded at $19.1780. Approximately 8,126,081 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 31,147,199 shares. The stock had previously closed at $20.89.

Wall Street Analysts Forecast Growth

WULF has been the topic of a number of recent analyst reports. Sanford C. Bernstein started coverage on shares of TeraWulf in a research report on Wednesday, June 3rd. They issued an "outperform" rating and a $46.00 price objective on the stock. Lucid Cap Mkts upgraded shares of TeraWulf to a "strong-buy" rating in a research note on Wednesday, May 27th. Rosenblatt Securities increased their target price on TeraWulf from $27.00 to $30.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Needham & Company LLC raised their price target on TeraWulf from $28.00 to $33.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $35.00 price target on shares of TeraWulf in a report on Wednesday, May 27th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $34.25.

TeraWulf Trading Down 6.6%

The stock has a market capitalization of $9.67 billion, a PE ratio of -7.87 and a beta of 3.73. 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 business's 50-day moving average is $24.57 and its two-hundred day moving average is $18.75.

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

Insider Buying and Selling

In other TeraWulf news, CEO Paul B. Prager sold 166,650 shares of TeraWulf stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $24.43, for a total transaction of $4,071,259.50. Following the transaction, the chief executive officer owned 4,249,202 shares of the company's stock, valued at $103,808,004.86. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 520,850 shares of company stock worth $12,221,864 over the last quarter. Insiders own 15.90% of the company's stock.

Institutional Trading of TeraWulf

A number of large investors have recently bought and sold shares of the business. Handelsbanken Fonder AB increased its stake in TeraWulf by 4.5% in the second quarter. Handelsbanken Fonder AB now owns 88,200 shares of the company's stock valued at $2,179,000 after purchasing an additional 3,800 shares during the period. Hennion & Walsh Asset Management Inc. lifted its holdings in shares of TeraWulf by 66.2% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 77,400 shares of the company's stock worth $1,912,000 after purchasing an additional 30,831 shares during the period. Assenagon Asset Management S.A. purchased a new position in TeraWulf in the 2nd quarter valued at $16,500,000. GAMMA Investing LLC increased its stake in TeraWulf by 25.2% in the 2nd quarter. GAMMA Investing LLC now owns 3,387 shares of the company's stock valued at $84,000 after buying an additional 681 shares during the period. Finally, CoreCap Advisors LLC increased its stake in TeraWulf by 106.7% in the 2nd 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 period. Institutional investors and hedge funds 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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