TeraWulf (NASDAQ:WULF) Shares Gap Up - Still a Buy?

Key Points

• TeraWulf Inc. shares gapped up from $5.24 to $5.48 prior to trading, ultimately closing at $5.38 with a trading volume of over 8 million shares.
• Analyst upgrades highlight the stock's potential, with Citizens JMP raising its rating to "strong-buy" with a price target of $7.00, and a consensus target price of $8.06 among analysts.
• The company reported a revenue of $47.64 million for the quarter, exceeding analyst estimates, but missed EPS targets with a loss of ($0.05) per share.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $5.24, but opened at $5.48. TeraWulf shares last traded at $5.38, with a volume of 8,089,990 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on WULF. JMP Securities raised their price target on shares of TeraWulf from $7.00 to $13.00 and gave the company a "market outperform" rating in a report on Friday. Northland Securities set a $12.00 price objective on shares of TeraWulf in a research note on Thursday. Wall Street Zen upgraded shares of TeraWulf from a "strong sell" rating to a "hold" rating in a research note on Saturday. Rosenblatt Securities lifted their target price on shares of TeraWulf from $6.00 to $10.50 and gave the company a "buy" rating in a report on Friday. Finally, B. Riley reaffirmed a "buy" rating and set a $14.00 target price (up from $8.00) on shares of TeraWulf in a report on Monday. Two analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $10.39.

TeraWulf Price Performance

The firm has a market cap of $3.68 billion, a PE ratio of -26.80 and a beta of 3.17. The stock's fifty day moving average price is $4.92 and its 200-day moving average price is $3.99. The company has a debt-to-equity ratio of 2.96, a current ratio of 0.66 and a quick ratio of 0.66.

TeraWulf (NASDAQ:WULF - Get Free Report) last released its earnings results on Friday, August 8th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 business 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) EPS. TeraWulf's quarterly revenue was up 33.9% compared to the same quarter last year. As a group, equities analysts expect that TeraWulf Inc. will post -0.17 EPS for the current fiscal year.

Hedge Funds Weigh In On TeraWulf

Institutional investors have recently bought and sold shares of the company. Sei Investments Co. boosted its stake in TeraWulf by 5.2% during the second quarter. Sei Investments Co. now owns 37,529 shares of the company's stock worth $164,000 after buying an additional 1,869 shares during the period. Envestnet Asset Management Inc. lifted its position in shares of TeraWulf by 5.8% during the second quarter. Envestnet Asset Management Inc. now owns 41,375 shares of the company's stock worth $181,000 after purchasing an additional 2,258 shares in the last quarter. Advisors Asset Management Inc. lifted its position in shares of TeraWulf by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 6,767 shares of the company's stock worth $30,000 after purchasing an additional 2,748 shares in the last quarter. Police & Firemen s Retirement System of New Jersey lifted its position in shares of TeraWulf by 5.1% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 59,677 shares of the company's stock worth $261,000 after purchasing an additional 2,905 shares in the last quarter. Finally, CoreCap Advisors LLC raised its holdings in TeraWulf by 67.9% in the fourth quarter. CoreCap Advisors LLC now owns 7,554 shares of the company's stock valued at $43,000 after acquiring an additional 3,054 shares in the last quarter. 62.49% of the stock is owned by hedge funds and other 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.