WhiteFiber (NASDAQ:WYFI) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• WhiteFiber shares jumped 17%, opening at $27.43 versus a prior close of $24.22, after the company reported quarterly EPS of -$0.39, beating estimates by $0.01. Quarterly revenue totaled $28.84 million.
• Wall Street sentiment remains favorable, with 10 analysts rating the stock a Buy; the consensus rating is “Moderate Buy” and the average price target is $34.83.
• Despite the earnings beat, WhiteFiber remains unprofitable, reporting a negative net margin of 45.24% and negative return on equity of 9.40%. The company provides AI infrastructure, HPC data-center, and cloud GPU services.

WhiteFiber, Inc. (NASDAQ:WYFI - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $24.22, but opened at $27.43. WhiteFiber shares last traded at $28.3150, with a volume of 814,011 shares trading hands.

The company reported ($0.39) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.40) by $0.01. The company had revenue of $28.84 million for the quarter. WhiteFiber had a negative net margin of 45.24% and a negative return on equity of 9.40%.

Wall Street Analyst Weigh In

WYFI has been the topic of a number of recent research reports. B. Riley Financial reaffirmed a "buy" rating on shares of WhiteFiber in a report on Monday, May 18th. Cantor Fitzgerald upped their target price on shares of WhiteFiber from $13.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, May 15th. Barclays raised their price target on WhiteFiber from $27.00 to $29.00 and gave the company an "equal weight" rating in a report on Tuesday, July 21st. Needham & Company LLC lifted their target price on WhiteFiber from $36.00 to $38.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Finally, BTIG Research upped their price target on WhiteFiber from $35.00 to $50.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Ten equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $34.83.

Institutional Investors Weigh In On WhiteFiber

A number of hedge funds have recently made changes to their positions in the company. Situational Awareness LP purchased a new stake in shares of WhiteFiber during the 4th quarter worth approximately $27,770,000. Clearfield Capital Management LP grew its holdings in shares of WhiteFiber by 426.6% in the fourth quarter. Clearfield Capital Management LP now owns 1,313,659 shares of the company's stock valued at $20,756,000 after purchasing an additional 1,064,177 shares in the last quarter. Marshall Wace LLP bought a new stake in WhiteFiber in the third quarter worth $9,105,000. Wasatch Advisors LP bought a new stake in WhiteFiber in the third quarter worth $8,382,000. Finally, CenterBook Partners LP purchased a new stake in WhiteFiber during the fourth quarter valued at $3,873,000.

WhiteFiber Stock Up 17.0%

The company's 50-day simple moving average is $30.13 and its 200 day simple moving average is $22.77. The company has a debt-to-equity ratio of 0.63, a current ratio of 2.77 and a quick ratio of 2.77. The firm has a market cap of $1.09 billion and a P/E ratio of -19.83.

About WhiteFiber

We believe we are a leading provider of artificial intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference.

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