TeraWulf (NASDAQ:WULF) Shares Gap Down – Should You Sell?

TeraWulf Inc. (NASDAQ:WULF) gapped down before the market opened on Tuesday. The stock had previously closed at $13.37, but opened at $12.72. TeraWulf shares last traded at $12.77, with a volume of 5,159,249 shares.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the stock. TD Cowen initiated coverage on shares of TeraWulf in a research report on Monday. They issued a “buy” rating and a $21.00 price objective for the company. B. Riley Financial upped their price objective on shares of TeraWulf from $32.00 to $40.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. HC Wainwright restated a “buy” rating on shares of TeraWulf in a research report on Friday, August 21st. Compass Point set a $40.00 target price on shares of TeraWulf in a research note on Monday, July 6th. Finally, UBS Group began coverage on shares of TeraWulf in a research note on Wednesday, September 23rd. They issued a “buy” rating and a $24.00 target price for the company. Four research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, TeraWulf presently has a consensus rating of “Moderate Buy” and a consensus target price of $32.86.

TeraWulf Price Performance

The company has a 50-day moving average of $15.76 and a two-hundred day moving average of $19.65. The stock has a market capitalization of $5.76 billion, a PE ratio of -2.64 and a beta of 3.80. The company has a debt-to-equity ratio of 27.25, a current ratio of 0.75 and a quick ratio of 0.75.

TeraWulf (NASDAQ:WULF) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($1.94) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.24) by ($1.70). The business had revenue of $44.77 million during the quarter, compared to analyst estimates of $46.00 million. TeraWulf had a negative return on equity of 458.62% and a negative net margin of 1,179.94%. The firm’s quarterly revenue was down 6.0% on a year-over-year basis. During the same period in the previous year, the business posted ($0.05) earnings per share. Sell-side analysts predict that TeraWulf Inc. will post -1.00 EPS for the current fiscal year.

Insider Transactions at TeraWulf

In related news, Director Walter E. Carter sold 130,626 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $15.14, for a total value of $1,977,677.64. Following the completion of the sale, the director directly owned 229,090 shares in the company, valued at approximately $3,468,422.60. The trade was a 36.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Paul B. Prager sold 137,500 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $17.06, for a total transaction of $2,345,750.00. Following the completion of the sale, the chief executive officer owned 3,807,552 shares of the company’s stock, valued at approximately $64,956,837.12. The trade was a 3.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have purchased a total of 11,968 shares of company stock worth $189,962 in the last three months. Company insiders own 15.90% of the company’s stock.

Hedge Funds Weigh In On TeraWulf

A number of large investors have recently bought and sold shares of WULF. BlackRock Inc. acquired a new position in shares of TeraWulf during the second quarter worth about $577,805,000. Bank of America Corp DE purchased a new stake in shares of TeraWulf in the second quarter worth about $140,057,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of TeraWulf in the second quarter worth about $61,962,000. Jennison Associates LLC acquired a new stake in shares of TeraWulf in the first quarter valued at about $53,418,000. Finally, Engle Capital Management L.P. grew its stake in shares of TeraWulf by 574.3% in the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company’s stock valued at $42,570,000 after buying an additional 2,512,600 shares in the last quarter. Hedge funds and other institutional investors own 62.49% of the company’s stock.

About TeraWulf

TeraWulf, Inc is a digital infrastructure company that develops and operates energy-intensive computing facilities in the United States. The company has primarily focused on bitcoin mining, using specialized application-specific integrated circuit (ASIC) hardware and power infrastructure to support cryptocurrency production.

TeraWulf emphasizes the use of low-carbon energy sources, including nuclear and hydropower, as part of its strategy to reduce the environmental impact of its operations.