TeraWulf (NASDAQ:WULF) Shares Gap Up - Should You Buy?

Key Points

• TeraWulf's shares gapped up from $9.20 to $9.58 before the market opened, last trading at $9.36 with a volume of over 13 million shares.
• Recent analyst ratings show a mix of upgrades and downgrades, with the consensus rating at "Buy" and a target price of $11.22.
• The company reported a quarterly revenue increase of 33.9% year-over-year, despite missing EPS estimates, with a current negative net margin of 91.42%.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $9.20, but opened at $9.58. TeraWulf shares last traded at $9.36, with a volume of 13,748,158 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Citizens Jmp upgraded shares of TeraWulf to a "strong-buy" rating and set a $7.00 price objective on the stock in a research note on Thursday, May 22nd. Northland Securities boosted their target price on TeraWulf from $12.00 to $15.00 and gave the stock an "outperform" rating in a report on Tuesday, August 26th. Cantor Fitzgerald upped their price objective on TeraWulf from $11.00 to $14.00 and gave the stock an "overweight" rating in a research report on Thursday, August 14th. B. Riley raised their price objective on TeraWulf from $8.00 to $14.00 and gave the stock a "buy" rating in a research report on Monday, August 18th. Finally, Rosenblatt Securities lifted their price target on TeraWulf from $10.50 to $12.00 and gave the stock a "buy" rating in a report on Friday, August 22nd. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $11.22.

TeraWulf Stock Up 1.1%

The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 2.96. The company has a market cap of $4.39 billion, a P/E ratio of -30.74 and a beta of 3.36. The business's 50 day moving average is $7.00 and its 200 day moving average is $4.66.

TeraWulf (NASDAQ:WULF - Get Free Report) last posted its earnings results on Friday, August 8th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). TeraWulf had a negative return on equity of 54.98% and a negative net margin of 91.42%.The firm had revenue of $47.64 million for the quarter, compared to analysts' expectations of $46.30 million. During the same period in the previous year, the company earned ($0.03) earnings per share. The company's revenue was up 33.9% compared to the same quarter last year. As a group, equities analysts anticipate that TeraWulf Inc. will post -0.17 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Amanda Fabiano sold 4,600 shares of the stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $8.64, for a total value of $39,744.00. Following the sale, the director directly owned 40,769 shares in the company, valued at $352,244.16. This represents a 10.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 24.88% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of WULF. Nisa Investment Advisors LLC raised its position in shares of TeraWulf by 135.6% during the 2nd quarter. Nisa Investment Advisors LLC now owns 6,575 shares of the company's stock worth $29,000 after buying an additional 3,784 shares in the last quarter. Steward Partners Investment Advisory LLC increased its position in shares of TeraWulf by 265.3% in the second quarter. Steward Partners Investment Advisory LLC now owns 6,609 shares of the company's stock worth $29,000 after acquiring an additional 4,800 shares in the last quarter. Advisors Asset Management Inc. increased its position in shares of TeraWulf by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 6,767 shares of the company's stock worth $30,000 after acquiring an additional 2,748 shares in the last quarter. CoreCap Advisors LLC increased its position in shares of TeraWulf by 67.9% in the fourth quarter. CoreCap Advisors LLC now owns 7,554 shares of the company's stock worth $43,000 after acquiring an additional 3,054 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC purchased a new position in shares of TeraWulf in the second quarter worth approximately $41,000. 62.49% of the stock is currently owned by institutional investors.

About TeraWulf

TeraWulf Inc, together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.