TeraWulf (NASDAQ:WULF) Shares Gap Up – What’s Next?

TeraWulf Inc. (NASDAQ:WULF) gapped up before the market opened on Wednesday. The stock had previously closed at $12.01, but opened at $12.70. TeraWulf shares last traded at $12.5080, with a volume of 7,693,530 shares.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Needham & Company LLC raised their price objective on TeraWulf from $28.00 to $33.00 and gave the company a “buy” rating in a research note on Tuesday, July 7th. HC Wainwright reissued a “buy” rating on shares of TeraWulf in a research note on Friday, August 21st. Wells Fargo & Company assumed coverage on TeraWulf in a research note on Thursday, September 17th. They set an “overweight” rating and a $30.00 target price for the company. William Blair assumed coverage on shares of TeraWulf in a report on Friday, August 28th. They issued an “outperform” rating for the company. Finally, Rothschild & Co Redburn assumed coverage on shares of TeraWulf in a research note on Monday, September 21st. They issued a “neutral” rating and a $15.00 price target on the stock. Four research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, TeraWulf has an average rating of “Moderate Buy” and a consensus price target of $32.52.

TeraWulf Price Performance

The company’s 50 day moving average price is $15.37 and its 200-day moving average price is $19.58. The stock has a market cap of $6.33 billion, a P/E ratio of -2.92 and a beta of 3.80. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 27.25.

TeraWulf (NASDAQ:WULF) last announced its earnings results on Wednesday, August 5th. The company reported ($1.94) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($1.70). The company had revenue of $44.77 million for the quarter, compared to the consensus estimate 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 revenue for the quarter was down 6.0% on a year-over-year basis. During the same period in the prior year, the business earned ($0.05) earnings per share. As a group, sell-side analysts expect that TeraWulf Inc. will post -1.00 earnings per share for the current year.

Insider Activity

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

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WULF. Engle Capital Management L.P. raised its holdings in TeraWulf by 574.3% during the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company’s stock worth $42,570,000 after buying an additional 2,512,600 shares during the last quarter. The Manufacturers Life Insurance Company acquired a new position in shares of TeraWulf during the second quarter valued at about $3,534,000. Jennison Associates LLC bought a new stake in shares of TeraWulf during the first quarter worth about $53,418,000. Troluce Capital Advisors LLC bought a new stake in shares of TeraWulf during the first quarter worth about $33,189,000. Finally, Alyeska Investment Group L.P. bought a new stake in shares of TeraWulf during the second quarter worth about $14,223,000. Institutional investors own 62.49% of the company’s stock.

About TeraWulf

TeraWulf Inc is a digital asset infrastructure company focused primarily on developing and operating environmentally conscious data centers for bitcoin mining and other high-performance computing applications. The company emphasizes the use of low-carbon energy, including nuclear and hydroelectric power, to support energy-intensive computing operations.

TeraWulf operates mining and data center facilities in the United States, including the Lake Mariner site in New York and the Nautilus Cryptomine facility in Pennsylvania.