TeraWulf (NASDAQ:WULF) Stock Sees Heavy Call Option Buying

TeraWulf Inc. (NASDAQ:WULF) was the recipient of unusually large options trading on Thursday. Stock investors bought 346,796 call options on the company. This is an increase of 108% compared to the typical volume of 167,074 call options.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Citigroup initiated coverage on shares of TeraWulf in a research report on Monday, June 29th. They issued a “buy” rating and a $36.00 price objective for the company. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $37.00 target price on shares of TeraWulf in a report on Wednesday, July 15th. Compass Point set a $40.00 price objective on TeraWulf in a research note on Monday, July 6th. B. Riley Financial lifted their target price on TeraWulf from $32.00 to $40.00 and gave the stock a “buy” rating in a research note on Monday, August 3rd. Finally, Chardan Capital reissued a “buy” rating and issued a $32.00 price target on shares of TeraWulf in a report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $33.33.

TeraWulf Price Performance

NASDAQ WULF traded down $0.73 during trading hours on Thursday, hitting $13.66. The company had a trading volume of 31,198,207 shares, compared to its average volume of 31,207,561. The firm has a 50 day simple moving average of $16.27 and a 200 day simple moving average of $19.75. TeraWulf has a 52 week low of $10.47 and a 52 week high of $29.84. The firm has a market capitalization of $6.82 billion, a price-to-earnings ratio of -3.12 and a beta of 3.80. The company has a debt-to-equity ratio of 27.25, a quick ratio of 0.75 and a current ratio of 0.75.

TeraWulf (NASDAQ:WULF) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($1.94) EPS for the quarter, missing analysts’ consensus estimates of ($0.24) by ($1.70). TeraWulf had a negative net margin of 1,179.94% and a negative return on equity of 458.62%. The firm had revenue of $44.77 million during the quarter, compared to the consensus estimate of $46.00 million. During the same quarter last year, the business posted ($0.05) earnings per share. TeraWulf’s revenue was down 6.0% compared to the same quarter last year. Equities research analysts expect that TeraWulf will post -1 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Paul B. Prager sold 137,500 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $17.06, for a total value of $2,345,750.00. Following the completion of the sale, the chief executive officer directly owned 3,807,552 shares of the company’s stock, valued at approximately $64,956,837.12. This represents a 3.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Walter E. Carter sold 130,626 shares of the firm’s stock in a transaction 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 transaction, the director owned 229,090 shares in the company, valued at approximately $3,468,422.60. This trade represents a 36.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders purchased 11,968 shares of company stock valued at $189,962. Corporate insiders own 15.90% of the company’s stock.

Institutional Investors Weigh In On TeraWulf

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of TeraWulf during the second quarter worth about $577,805,000. Bank of America Corp DE bought a new stake in TeraWulf during the second quarter valued at approximately $140,057,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in TeraWulf during the second quarter valued at approximately $61,962,000. Jennison Associates LLC purchased a new position in TeraWulf in the 1st quarter worth approximately $53,418,000. Finally, Engle Capital Management L.P. raised its position in shares of TeraWulf by 574.3% during the 1st 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. 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.