Bitfarms (NASDAQ:BITF) Shares Gap Up - Is It Still a Buy?

Bitfarms Ltd. (NASDAQ:BITF) recently saw its stock price increase significantly before the trading week began. Previously closing at $1.16, shares opened at $1.28. As of the last trading, the stock stood at $1.21, with approximately 13,190,309 shares exchanged.

Wall Street Analysts See Potential Growth

Many analysts have shared their opinions on Bitfarms in recent reports. Keefe, Bruyette & Woods provided coverage on Bitfarms, recommending it as an "outperform" on January 8. Another firm, HC Wainwright, confirmed a "buy" rating with a price target of $4.00 on November 14. Alliance Global Partners also initiated coverage, giving it a "buy" rating and setting a price target of $6.00. Furthermore, Stifel Canada changed their stance on the stock from "hold" to "moderate buy". Currently, analysis shows one hold rating and six buy ratings for Bitfarms, leading to a consensus rating of "Moderate Buy" and an average target price of $4.05 according to MarketBeat.com.

Examining Bitfarms Price Performance

The market capitalization of Bitfarms is reported at $565.61 million, with a price-to-earnings ratio recorded at -3.28 and a beta of 3.64. The company’s financial metrics reveal a quick ratio of 3.68, a current ratio of 3.70, and a debt-to-equity ratio of 0.04. Over the past fifty days, the stock's simple moving average has been noted at $1.47, while its two-hundred day simple moving average stands at $1.85.

Institutional Investing Trends in Bitfarms

Institutional investors have been active in adjusting their positions in Bitfarms. Chesapeake Capital Corp IL increased its stake by 27.9% in the third quarter, amassing a total of 22,000 shares, a value of around $50,000 after acquiring an additional 4,800 shares. Gladstone Institutional Advisory LLC raised its holdings by 3.2%, now owning 159,550 shares worth $337,000. Lifeworks Advisors LLC increased its position by 42.4% in the fourth quarter, totaling 24,664 shares valued at $37,000 following a purchase of 7,339 shares. Cresset Asset Management LLC boosted its stake by 54.6%, totaling 27,735 shares valued around $41,000 after acquiring an extra 9,795 shares. HighTower Advisors LLC also entered a new investment in Bitfarms, valued at $25,000. Overall, institutional investors and hedge funds own about 20.59% of the company’s stock.

Overview of Bitfarms Business Operations

Bitfarms Ltd. is involved in the mining of cryptocurrency coins and tokens across various countries, including Canada, the United States, Paraguay, and Argentina. The company operates server farms that primarily validate Bitcoin transactions, earning cryptocurrency from block rewards and transaction fees. Additionally, Bitfarms provides electrician services to both commercial and residential clients located in Quebec, Canada.

Stocks, Investing, Crypto