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

Key Points

• TeraWulf shares gapped down at the open, falling from a prior close of $22.32 to an open of $21.40 and last trading around $20.91.
• The stock moved lower even as analyst sentiment remained mostly positive: several firms raised price targets, and the consensus rating is Moderate Buy with an average target of $27.55.
• Recent earnings were weak, with TeraWulf reporting a larger-than-expected loss of $1.01 per share versus the $0.19 loss expected, while revenue of $34.01 million also slightly missed estimates.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $22.32, but opened at $21.40. TeraWulf shares last traded at $20.9140, with a volume of 14,453,190 shares traded.

Analyst Ratings Changes

Several brokerages have recently issued reports on WULF. Oppenheimer boosted their price objective on shares of TeraWulf from $20.00 to $25.00 and gave the company an "outperform" rating in a research note on Monday, April 20th. Cantor Fitzgerald increased their target price on TeraWulf from $30.00 to $31.00 and gave the stock an "overweight" rating in a research report on Monday, May 11th. Morgan Stanley reiterated an "overweight" rating and issued a $41.50 target price on shares of TeraWulf in a report on Monday, April 27th. Needham & Company LLC upped their price target on TeraWulf from $22.00 to $28.00 and gave the stock a "buy" rating in a research note on Monday, May 11th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of TeraWulf in a report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, TeraWulf currently has a consensus rating of "Moderate Buy" and an average price target of $27.55.

TeraWulf Price Performance

The company's fifty day moving average is $18.36 and its two-hundred day moving average is $15.56. The company has a debt-to-equity ratio of 33.00, a quick ratio of 1.20 and a current ratio of 1.20. The firm has a market cap of $10.29 billion, a price-to-earnings ratio of -8.39 and a beta of 3.84.

TeraWulf (NASDAQ:WULF - Get Free Report) last announced its quarterly earnings results 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 net margin of 611.46% and a negative return on equity of 305.07%. The company had revenue of $34.01 million during the quarter, compared to analyst estimates of $34.69 million. During the same quarter in the prior year, the company posted ($0.16) earnings per share. The firm's revenue for the quarter was down 1.1% on a year-over-year basis. Equities research analysts forecast that TeraWulf Inc. will post -0.54 EPS for the current year.

Insider Activity

In related news, Director Michael C. Bucella bought 1,665 shares of the company's stock in a transaction that occurred on Friday, March 20th. The shares were acquired at an average cost of $15.04 per share, for a total transaction of $25,041.60. Following the acquisition, the director owned 280,052 shares in the company, valued at $4,211,982.08. This represents a 0.60% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Paul B. Prager sold 79,200 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $20.62, for a total value of $1,633,104.00. Following the transaction, the chief executive officer directly owned 884,320 shares in the company, valued at $18,234,678.40. This trade represents a 8.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders purchased 13,094 shares of company stock worth $200,392 and sold 954,200 shares worth $16,390,854. Insiders own 15.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in WULF. Kraematon Investment Advisors Inc. increased its stake in TeraWulf by 2.3% during the 4th quarter. Kraematon Investment Advisors Inc. now owns 42,452 shares of the company's stock worth $488,000 after buying an additional 952 shares during the period. R Squared Ltd boosted its position in TeraWulf by 5.0% in the 4th quarter. R Squared Ltd now owns 22,207 shares of the company's stock valued at $255,000 after buying an additional 1,056 shares during the last quarter. Franklin Resources Inc. boosted its position in TeraWulf by 2.0% in the 4th quarter. Franklin Resources Inc. now owns 63,005 shares of the company's stock valued at $724,000 after buying an additional 1,259 shares during the last quarter. Rafferty Asset Management LLC grew its stake in shares of TeraWulf by 10.7% during the third quarter. Rafferty Asset Management LLC now owns 13,325 shares of the company's stock valued at $152,000 after acquiring an additional 1,293 shares in the last quarter. Finally, Xponance Inc. grew its stake in shares of TeraWulf by 7.3% during the third quarter. Xponance Inc. now owns 22,215 shares of the company's stock valued at $254,000 after acquiring an additional 1,503 shares in the last quarter. 62.49% of the stock is currently owned by hedge funds and other institutional investors.

TeraWulf Company Profile

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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