TeraWulf (NASDAQ:WULF) Stock Price Down 12% – Should You Sell?

TeraWulf Inc. (NASDAQ:WULF)’s share price dropped 12% during mid-day trading on Thursday. The company traded as low as $11.26 and last traded at $11.2350. 30,063,127 shares changed hands during trading, a decline of 6% from the average daily volume of 31,942,340 shares. The stock had previously closed at $12.76.

Analysts Set New Price Targets

WULF has been the topic of a number of research reports. 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. Keefe, Bruyette & Woods lowered their price target on TeraWulf from $33.00 to $30.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 28th. Cantor Fitzgerald lowered their price target on shares of TeraWulf from $37.00 to $30.00 and set an “overweight” rating for the company in a report on Friday, October 16th. Citigroup started coverage on shares of TeraWulf in a report on Monday, June 29th. They issued a “buy” rating and a $36.00 target price on the stock. Finally, Wells Fargo & Company assumed coverage on TeraWulf in a research report on Thursday, September 17th. They set an “overweight” rating and a $30.00 price target for the company. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $32.52.

TeraWulf Stock Performance

The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 27.25. The firm has a market capitalization of $5.65 billion, a PE ratio of -2.59 and a beta of 3.80. The company has a 50-day moving average of $15.06 and a 200 day moving average of $19.49.

TeraWulf (NASDAQ:WULF) last announced 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 firm had revenue of $44.77 million during 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 business’s revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.05) EPS. Equities research analysts predict that TeraWulf Inc. will post -1.01 EPS for the current year.

Insider Buying and Selling

In related news, CEO Paul Prager sold 137,500 shares of the firm’s 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 transaction, the chief executive officer owned 3,807,552 shares in the company, valued at $64,956,837.12. This trade represents a 3.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 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 of the company’s stock, valued at approximately $3,468,422.60. This represents a 36.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders purchased 11,968 shares of company stock worth $189,962 in the last three months. Corporate insiders own 15.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in TeraWulf in the 2nd quarter valued at approximately $577,805,000. Bank of America Corp DE grew its stake in TeraWulf by 9.2% during the first quarter. Bank of America Corp DE now owns 5,777,458 shares of the company’s stock worth $83,369,000 after buying an additional 488,184 shares during the period. Jennison Associates LLC acquired a new position in TeraWulf during the 1st quarter worth approximately $53,418,000. Engle Capital Management L.P. grew its stake in shares of TeraWulf by 574.3% during 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 acquiring an additional 2,512,600 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in TeraWulf by 325.9% in the third quarter. Assenagon Asset Management S.A. now owns 2,845,156 shares of the company’s stock valued at $42,108,000 after acquiring an additional 2,177,134 shares in the last quarter. Institutional investors and hedge funds 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.