WhiteFiber (NASDAQ:WYFI) Trading Down 8.9% - Should You Sell?

Key Points

• WhiteFiber shares fell 8.9% on Friday, trading as low as $24.43 after closing at $27.11, on volume well below average.
• Despite the drop, Wall Street sentiment is still mostly positive: 10 analysts rate WYFI a Buy, with a consensus rating of Moderate Buy and a target price of $34.83.
• The company recently reported a Q1 EPS miss of $(0.31) versus expectations of $(0.24), though revenue rose 30.4% year over year to $21.92 million.

WhiteFiber, Inc. (NASDAQ:WYFI - Get Free Report)'s stock price dropped 8.9% during trading on Friday . The stock traded as low as $24.43 and last traded at $24.71. Approximately 282,044 shares were traded during trading, a decline of 82% from the average daily volume of 1,551,649 shares. The stock had previously closed at $27.11.

Wall Street Analysts Forecast Growth

WYFI has been the subject of several analyst reports. Needham & Company LLC raised their price objective on WhiteFiber from $36.00 to $38.00 and gave the company a "buy" rating in a report on Friday, May 15th. Cantor Fitzgerald upped their target price on WhiteFiber from $13.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, May 15th. BTIG Research raised their price target on WhiteFiber from $35.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. B. Riley Financial reaffirmed a "buy" rating on shares of WhiteFiber in a research report on Monday, May 18th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of WhiteFiber 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 given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $34.83.

WhiteFiber Stock Down 7.5%

The company has a current ratio of 2.77, a quick ratio of 2.77 and a debt-to-equity ratio of 0.63. The firm's 50 day moving average price is $31.28 and its two-hundred day moving average price is $22.25. The company has a market capitalization of $968.72 million and a price-to-earnings ratio of -17.56.

WhiteFiber (NASDAQ:WYFI - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported ($0.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.07). WhiteFiber had a negative net margin of 45.24% and a negative return on equity of 9.40%. The firm had revenue of $21.92 million during the quarter. WhiteFiber's quarterly revenue was up 30.4% compared to the same quarter last year. Sell-side analysts anticipate that WhiteFiber, Inc. will post -1.26 earnings per share for the current fiscal year.

Institutional Trading of WhiteFiber

A number of hedge funds have recently made changes to their positions in the business. CoreCap Advisors LLC acquired a new position in shares of WhiteFiber during the 2nd quarter worth approximately $235,000. Bank of America Corp DE lifted its holdings in WhiteFiber by 220.9% during the 1st quarter. Bank of America Corp DE now owns 60,113 shares of the company's stock valued at $716,000 after purchasing an additional 41,383 shares during the last quarter. Feynman Point Asset Management LLC lifted its holdings in WhiteFiber by 6.9% during the 1st quarter. Feynman Point Asset Management LLC now owns 169,900 shares of the company's stock valued at $2,024,000 after purchasing an additional 11,000 shares during the last quarter. Lazard Asset Management LLC boosted its position in WhiteFiber by 16.6% during the first quarter. Lazard Asset Management LLC now owns 132,693 shares of the company's stock worth $1,580,000 after purchasing an additional 18,928 shares during the period. Finally, Sculptor Capital LP bought a new position in WhiteFiber during the first quarter worth $476,000.

WhiteFiber Company Profile

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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