TeraWulf (NASDAQ:WULF) Stock Price Down 9.9% - Should You Sell?

Key Points

• TeraWulf shares fell 9.9% in midday trading, dropping from a prior close of $22.21 to around $20, on lighter-than-usual volume.
• The company’s 20-year Anthropic lease is expected to generate about $19 billion in contracted revenue, strengthening its shift from bitcoin mining toward AI infrastructure.
• Despite the bullish deal news and higher analyst targets, investor caution remains due to TeraWulf’s heavy debt load, recent earnings miss, and execution risk on its large AI buildout.

Shares of TeraWulf Inc. (NASDAQ:WULF - Get Free Report) were down 9.9% during mid-day trading on Tuesday . The company traded as low as $20.91 and last traded at $20.0090. 5,757,779 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 30,811,012 shares. The stock had previously closed at $22.21.

Key TeraWulf News

Here are the key news stories impacting TeraWulf this week:

• Positive Sentiment: TeraWulf’s 20-year Anthropic lease is expected to bring in roughly $19 billion in contracted revenue, significantly improving long-term visibility and reinforcing the company’s transition from bitcoin mining to AI infrastructure. Article Title
• Positive Sentiment: Rosenblatt Securities raised its price target on WULF to $30 from $27 and reiterated a buy rating, signaling continued analyst confidence after the Anthropic deal. Article Title
• Positive Sentiment: Needham & Company lifted its price target to $33 from $28 and kept a buy rating, adding to the bullish momentum around the stock. Article Title
• Neutral Sentiment: The company’s strategic sale of its Abernathy joint venture stake for about $450 million provides capital for new AI infrastructure, but execution on the large Kentucky buildout remains a key watch item for investors. Article Title
• Negative Sentiment: TeraWulf still carries a high debt load and recently missed earnings estimates, so some investors may remain cautious despite the improved outlook. Article Title

Analyst Ratings Changes

A number of equities analysts recently issued reports on WULF shares. Oppenheimer reiterated an "outperform" rating and issued a $35.00 target price on shares of TeraWulf in a research report on Wednesday, May 27th. Sanford C. Bernstein assumed coverage on TeraWulf in a report on Wednesday, June 3rd. They issued an "outperform" rating and a $46.00 price objective for the company. Morgan Stanley set a $66.50 price target on shares of TeraWulf in a research report on Wednesday, June 3rd. Bank of America initiated coverage on TeraWulf in a report on Monday, June 15th. They set a "buy" rating and a $34.00 price objective on the stock. Finally, Northland Securities set a $30.00 target price on shares of TeraWulf in a research note on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $33.93.

TeraWulf Price Performance

The company has a market capitalization of $10.08 billion, a PE ratio of -8.24 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 stock has a 50 day moving average price of $24.47 and a two-hundred day moving average price of $18.41.

TeraWulf (NASDAQ:WULF - Get Free Report) last released its quarterly earnings data on Friday, May 8th. The company reported ($1.01) EPS for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.82). The firm had revenue of $34.01 million during the quarter, compared to analyst estimates of $34.69 million. TeraWulf had a negative return on equity of 305.07% and a negative net margin of 611.46%.The company's quarterly revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.16) EPS. Equities analysts forecast that TeraWulf Inc. will post -0.96 earnings per share for the current year.

Insider Activity at TeraWulf

In other news, CEO Paul B. Prager sold 166,650 shares of the firm's stock in a transaction on Tuesday, May 26th. The shares were 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 in the company, valued at approximately $103,808,004.86. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 520,850 shares of company stock worth $12,221,864. Corporate insiders own 15.90% of the company's stock.

Hedge Funds Weigh In On TeraWulf

Several hedge funds have recently bought and sold shares of WULF. CoreCap Advisors LLC lifted its position in shares of TeraWulf by 106.7% in the second quarter. CoreCap Advisors LLC now owns 1,447 shares of the company's stock worth $36,000 after buying an additional 747 shares during the last quarter. Kraematon Investment Advisors Inc. increased its holdings in shares of TeraWulf by 2.3% during the 4th quarter. Kraematon Investment Advisors Inc. now owns 42,452 shares of the company's stock valued at $488,000 after acquiring an additional 952 shares during the last quarter. R Squared Ltd raised its stake in shares of 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 acquiring an additional 1,056 shares in the last quarter. Franklin Resources Inc. raised its stake in shares of 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 acquiring an additional 1,259 shares in the last quarter. Finally, Rafferty Asset Management LLC lifted its holdings in TeraWulf by 10.7% in the 3rd quarter. Rafferty Asset Management LLC now owns 13,325 shares of the company's stock worth $152,000 after purchasing an additional 1,293 shares during the last quarter. 62.49% of the stock is owned by institutional investors and hedge funds.

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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