Traders Buy High Volume of Digi Power X Call Options (NASDAQ:DGXX)

Key Points

• Unusual options activity: Investors bought 17,903 call options on DGXX on Tuesday — a 592% jump from the average of 2,588 calls, signaling heavy bullish bets.
• Shares spiked with massive volume: DGXX traded up to $5.14 (up $1.19) on 82,280,330 shares versus an average of 3,356,720, pushing the stock above the consensus $4 target.
• Weak fundamentals and mixed analyst views: The company missed EPS ($-0.31 vs. -$0.14) despite a revenue beat, has negative margins/ROE, a consensus "Hold" and recent downgrades from some analysts.

Digi Power X Inc. (NASDAQ:DGXX - Get Free Report) saw some unusual options trading on Tuesday. Investors acquired 17,903 call options on the stock. This represents an increase of 592% compared to the average volume of 2,588 call options.

Analyst Upgrades and Downgrades

DGXX has been the topic of a number of analyst reports. Wall Street Zen downgraded Digi Power X from a "hold" rating to a "sell" rating in a research note on Saturday, March 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Digi Power X in a research note on Monday, April 20th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Digi Power X presently has a consensus rating of "Hold" and a consensus target price of $4.00.

Insider Buying and Selling at Digi Power X

In other Digi Power X news, President Alec Amar sold 25,700 shares of Digi Power X stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $2.26, for a total value of $58,082.00. Following the transaction, the president directly owned 1,341,449 shares in the company, valued at approximately $3,031,674.74. This trade represents a 1.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On Digi Power X

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Chicago Partners Investment Group LLC acquired a new position in Digi Power X during the first quarter worth $34,000. Sovereign Financial Group Inc. acquired a new position in Digi Power X during the first quarter worth $39,000. XTX Topco Ltd acquired a new position in shares of Digi Power X in the fourth quarter worth $414,000. Vennlight Capital Management LP acquired a new position in shares of Digi Power X in the fourth quarter worth $4,471,000. Finally, Quadrature Capital Ltd acquired a new position in shares of Digi Power X in the fourth quarter worth $930,000. 1.93% of the stock is owned by institutional investors and hedge funds.

Digi Power X Stock Performance

DGXX stock traded up $1.19 during midday trading on Tuesday, hitting $5.14. 82,280,330 shares of the stock were exchanged, compared to its average volume of 3,356,720. The stock's 50-day moving average price is $2.66 and its 200-day moving average price is $3.16. The stock has a market cap of $235.34 million, a price-to-earnings ratio of -8.18 and a beta of 5.85. Digi Power X has a fifty-two week low of $1.16 and a fifty-two week high of $6.78.

Digi Power X (NASDAQ:DGXX - Get Free Report) last issued its quarterly earnings data on Tuesday, March 31st. The company reported ($0.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.17). The firm had revenue of $8.65 million for the quarter, compared to analyst estimates of $6.80 million. Digi Power X had a negative return on equity of 54.82% and a negative net margin of 82.94%. Research analysts anticipate that Digi Power X will post -0.39 EPS for the current year.

About Digi Power X

Digihost Technology Inc operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.

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