TeraWulf (NASDAQ:WULF) Trading 7% Higher - Should You Buy?

Key Points

• TeraWulf shares rose 7% in Monday trading, reaching as high as $19.75, though volume was far below average.
• Analyst sentiment is mixed but generally positive: TeraWulf has a Moderate Buy consensus rating and a $34.60 average price target, despite some recent sell ratings.
• The company posted a wider-than-expected loss in its latest quarter, missing EPS estimates, while insiders recently sold stock and the company continues to carry high leverage.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report)'s share price was up 7% during mid-day trading on Monday . The stock traded as high as $19.75 and last traded at $19.4290. Approximately 5,488,530 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 31,457,998 shares. The stock had previously closed at $18.16.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Keefe, Bruyette & Woods lifted their target price on shares of TeraWulf from $25.00 to $33.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Weiss Ratings reiterated a "sell (d-)" rating on shares of TeraWulf in a report on Wednesday, June 24th. Arete Research began coverage on TeraWulf in a research note on Monday, March 23rd. They issued a "buy" rating and a $30.00 price objective on the stock. Lucid Cap Mkts upgraded TeraWulf to a "strong-buy" rating in a research report on Wednesday, May 27th. Finally, Zacks Research cut shares of TeraWulf from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, TeraWulf has an average rating of "Moderate Buy" and a consensus price target of $34.60.

TeraWulf Stock Performance

The company has a market cap of $9.45 billion, a PE ratio of -7.69 and a beta of 3.73. The company has a 50-day moving average of $24.14 and a 200-day moving average of $18.94. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 33.00.

TeraWulf (NASDAQ:WULF - Get Free Report) last issued its quarterly earnings data 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 net margin of 611.46% and a negative return on equity of 305.07%. The company had revenue of $34.01 million for the quarter, compared to the consensus estimate of $34.69 million. During the same quarter last year, the business posted ($0.16) earnings per share. TeraWulf's revenue was down 1.1% on a year-over-year basis. As a group, analysts anticipate that TeraWulf Inc. will post -1.09 earnings per share for the current year.

Insider Activity

In other news, CEO Paul B. Prager sold 137,500 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $26.60, for a total transaction of $3,657,500.00. Following the transaction, the chief executive officer owned 3,945,052 shares of the company's stock, valued at $104,938,383.20. This represents a 3.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 520,850 shares of company stock valued at $12,221,864 in the last 90 days. Insiders own 15.90% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in WULF. Handelsbanken Fonder AB increased its holdings in shares of TeraWulf by 4.5% in the second quarter. Handelsbanken Fonder AB now owns 88,200 shares of the company's stock worth $2,179,000 after purchasing an additional 3,800 shares during the period. Hennion & Walsh Asset Management Inc. grew its holdings in TeraWulf by 66.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 77,400 shares of the company's stock worth $1,912,000 after acquiring an additional 30,831 shares during the last quarter. Assenagon Asset Management S.A. purchased a new position in shares of TeraWulf during the second quarter valued at approximately $16,500,000. GAMMA Investing LLC raised its holdings in shares of TeraWulf by 25.2% during the second quarter. GAMMA Investing LLC now owns 3,387 shares of the company's stock valued at $84,000 after acquiring an additional 681 shares in the last quarter. Finally, CoreCap Advisors LLC raised its stake in 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 in the last quarter. Institutional investors own 62.49% of the company's stock.

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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