TeraWulf (NASDAQ:WULF) Shares Down 12.2% on Disappointing Earnings

TeraWulf Inc. (NASDAQ:WULF)’s share price dropped 12.2% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $12.66 and last traded at $12.5510. Approximately 11,030,219 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 44,794,348 shares. The stock had previously closed at $14.30.

The company reported ($1.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($1.09). The business had revenue of $50.58 million during the quarter, compared to the consensus estimate of $56.27 million. TeraWulf had a negative net margin of 91.42% and a negative return on equity of 54.98%. The firm’s revenue was up 86.9% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on WULF. Oppenheimer began coverage on TeraWulf in a research note on Tuesday, October 28th. They set an “outperform” rating and a $20.00 target price on the stock. B. Riley reiterated a “buy” rating on shares of TeraWulf in a research note on Wednesday, October 22nd. UBS Group set a $18.25 target price on shares of TeraWulf in a research report on Friday, October 24th. Compass Point set a $17.00 price target on shares of TeraWulf and gave the stock a “neutral” rating in a report on Tuesday, October 28th. Finally, Northland Securities set a $23.25 price objective on TeraWulf in a report on Wednesday, October 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $17.67.

Insider Buying and Selling at TeraWulf

In related news, Director Amanda Fabiano sold 4,600 shares of the business’s stock in a transaction on Friday, August 15th. The stock was sold at an average price of $8.64, for a total transaction of $39,744.00. Following the sale, the director directly owned 40,769 shares in the company, valued at approximately $352,244.16. The trade was a 10.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. First Dallas Securities Inc. grew its position in TeraWulf by 126.5% during the 2nd quarter. First Dallas Securities Inc. now owns 132,500 shares of the company’s stock worth $580,000 after acquiring an additional 74,000 shares during the last quarter. Hodges Capital Management Inc. lifted its position in TeraWulf by 17,747.4% in the first quarter. Hodges Capital Management Inc. now owns 3,569,479 shares of the company’s stock valued at $9,745,000 after purchasing an additional 3,549,479 shares during the last quarter. Nuveen LLC purchased a new stake in shares of TeraWulf during the first quarter valued at approximately $1,770,000. Banco Bilbao Vizcaya Argentaria S.A. bought a new position in shares of TeraWulf in the first quarter worth approximately $263,000. Finally, Quantbot Technologies LP bought a new position in shares of TeraWulf in the first quarter worth approximately $3,702,000. 62.49% of the stock is currently owned by institutional investors.

TeraWulf Trading Down 13.5%

The firm’s 50 day moving average is $12.51 and its 200 day moving average is $7.68. The company has a debt-to-equity ratio of 2.96, a current ratio of 0.66 and a quick ratio of 0.66. The company has a market capitalization of $5.05 billion, a PE ratio of -35.34 and a beta of 3.57.

TeraWulf Company Profile

TeraWulf Inc, together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.