TeraWulf (NASDAQ:WULF) Stock Price Down 10.5% Following Analyst Downgrade

Key Points

• TeraWulf shares fell 10.5% to about $15.30 after Keefe, Bruyette & Woods cut its price target from $33 to $30, though it maintained an outperform rating. Trading volume was slightly above average.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $34.29; however, Zacks Research downgraded the stock to “Strong Sell.”
• CEO Paul B. Prager sold 166,650 shares for roughly $4.1 million under a Rule 10b5-1 plan, while institutional investors own 62.49% of the company. TeraWulf recently reported a larger-than-expected quarterly loss and a 1.1% year-over-year revenue decline.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s share price fell 10.5% during mid-day trading on Wednesday after Keefe, Bruyette & Woods lowered their price target on the stock from $33.00 to $30.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. TeraWulf traded as low as $15.36 and last traded at $15.2960. 33,388,534 shares changed hands during trading, an increase of 6% from the average daily volume of 31,556,295 shares. The stock had previously closed at $17.09.

Several other research firms have also weighed in on WULF. Zacks Research lowered shares of TeraWulf from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Sanford C. Bernstein started coverage on TeraWulf in a research report on Wednesday, June 3rd. They issued an "outperform" rating and a $46.00 price objective on the stock. Rosenblatt Securities restated a "buy" rating and set a $30.00 price objective on shares of TeraWulf in a research note on Wednesday, July 15th. Oppenheimer reaffirmed an "outperform" rating and issued a $35.00 target price on shares of TeraWulf in a research report on Wednesday, May 27th. Finally, Bank of America initiated coverage on TeraWulf in a research note on Monday, June 15th. They issued a "buy" rating and a $34.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $34.29.

Insider Buying and Selling

In other TeraWulf news, CEO Paul B. Prager sold 166,650 shares of the company's stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 4,249,202 shares of the company's stock, valued at $103,808,004.86. This represents a 3.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of WULF. Vanguard Group Inc. boosted its stake in shares of TeraWulf by 37.4% during the 4th quarter. Vanguard Group Inc. now owns 33,643,009 shares of the company's stock valued at $386,558,000 after buying an additional 9,162,958 shares during the last quarter. Engle Capital Management L.P. raised its holdings in TeraWulf by 574.3% in the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company's stock valued at $42,570,000 after acquiring an additional 2,512,600 shares in the last quarter. Oppenheimer & Co. Inc. raised its holdings in TeraWulf by 45.1% in the fourth quarter. Oppenheimer & Co. Inc. now owns 140,101 shares of the company's stock valued at $1,610,000 after acquiring an additional 43,574 shares in the last quarter. Pictet Asset Management Holding SA boosted its stake in TeraWulf by 178.8% during the 4th quarter. Pictet Asset Management Holding SA now owns 151,005 shares of the company's stock valued at $1,735,000 after acquiring an additional 96,843 shares during the last quarter. Finally, Jennison Associates LLC bought a new position in TeraWulf during the 1st quarter valued at $53,418,000. Hedge funds and other institutional investors own 62.49% of the company's stock.

TeraWulf Stock Performance

The company has a market capitalization of $7.55 billion, a price-to-earnings ratio of -6.18 and a beta of 3.73. 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 company's fifty day simple moving average is $23.61 and its two-hundred day simple moving average is $19.27.

TeraWulf (NASDAQ:WULF - Get Free Report) last released its earnings results on Friday, May 8th. The company reported ($1.01) earnings per share 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 company had revenue of $34.01 million during the quarter, compared to the consensus estimate of $34.69 million. During the same period in the previous year, the firm posted ($0.16) EPS. TeraWulf's revenue for the quarter was down 1.1% on a year-over-year basis. Equities research analysts predict that TeraWulf Inc. will post -1.09 earnings per share for the current fiscal year.

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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