TeraWulf (NASDAQ:WULF) Stock Gets Downgrade from Zacks Research

TeraWulf (NASDAQ:WULF) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday, Zacks reports.

A number of other research firms have also recently issued reports on WULF. Morgan Stanley boosted their target price on TeraWulf from $62.50 to $65.00 and gave the company an “overweight” rating in a research note on Friday, October 9th. Citigroup initiated coverage on TeraWulf in a research report on Monday, June 29th. They set a “buy” rating and a $36.00 price target on the stock. UBS Group started coverage on TeraWulf in a research report on Wednesday, September 23rd. They set a “buy” rating and a $24.00 price target on the stock. William Blair began coverage on TeraWulf in a report on Friday, August 28th. They set an “outperform” rating on the stock. Finally, TD Cowen started coverage on TeraWulf in a research report on Monday. They issued a “buy” rating and a $21.00 price objective for the company. Four analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, TeraWulf has a consensus rating of “Moderate Buy” and an average target price of $32.86.

TeraWulf Price Performance

Shares of WULF stock opened at $11.54 on Tuesday. 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 has a 12-month low of $10.47 and a 12-month high of $29.84. The firm has a fifty day moving average of $15.76 and a 200-day moving average of $19.65. The firm has a market capitalization of $5.76 billion, a price-to-earnings ratio of -2.64 and a beta of 3.80.

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). The firm had revenue of $44.77 million during the quarter, compared to the consensus estimate of $46.00 million. TeraWulf had a negative net margin of 1,179.94% and a negative return on equity of 458.62%. TeraWulf’s quarterly revenue was down 6.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.05) EPS. On average, equities research analysts forecast that TeraWulf will post -1.00 earnings per share for the current year.

Insider Transactions at TeraWulf

In related news, CEO Paul Prager sold 137,500 shares of the firm’s stock in a transaction 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 sale, 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 SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Walter Carter sold 130,626 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $15.14, for a total transaction of $1,977,677.64. Following the sale, the director 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 disclosure for this sale is available in the SEC filing. Insiders purchased 11,968 shares of company stock valued at $189,962 over the last quarter. Corporate insiders own 15.90% of the company’s stock.

Institutional Trading of TeraWulf

Several hedge funds and other institutional investors have recently modified their holdings of WULF. Engle Capital Management L.P. boosted its stake 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 worth $42,570,000 after buying an additional 2,512,600 shares during the last quarter. The Manufacturers Life Insurance Company bought a new position in shares of TeraWulf in the 2nd quarter valued at about $3,534,000. Jennison Associates LLC bought a new position in shares of TeraWulf in the 1st quarter valued at about $53,418,000. Troluce Capital Advisors LLC bought a new position in shares of TeraWulf in the 1st quarter valued at about $33,189,000. Finally, Alyeska Investment Group L.P. acquired a new stake in shares of TeraWulf in the second quarter valued at about $14,223,000. Institutional investors and hedge funds 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.