TeraWulf (NASDAQ:WULF) Shares Gap Down - What's Next?

TeraWulf Inc. (NASDAQ:WULF) experienced a notable decline as its share price gapped down before trading commenced on Tuesday. The stock closed the previous day at $3.67 but opened at a lower price of $3.48. As trading progressed, TeraWulf shares saw further decline, with the last recorded price at $3.21 and a trading volume of 8,009,250 shares.

Analyst Ratings Changes

Several research institutions have recently provided insights regarding TeraWulf (WULF). Cantor Fitzgerald reiterated an "overweight" rating along with a price target of $11.00 in a report dated January 6th. Similarly, B. Riley increased their target price for TeraWulf from $8.00 to $10.00 and classified the stock as a "buy" in a report released on December 19th. Furthermore, ATB Capital Markets upgraded TeraWulf to a "strong-buy" rating on January 5th. Needham & Company also maintained a "buy" rating with a price target set at $9.50 on January 13th. Additionally, Northland Securities affirmed an "outperform" rating with a price objective of $10.00 on December 24th. Currently, one analyst has assigned a hold rating, while seven analysts advocate a buy rating, and two have issued a strong buy designation. As per MarketBeat.com, the average rating for TeraWulf stands at "Buy," with a consensus target price of $8.64.

TeraWulf Stock Down 9.4 %

The decline in TeraWulf's stock price reflects a downturn of approximately 9.4%. The company holds a market capitalization of $1.30 billion, alongside a P/E ratio of -16.80 and a beta value of 2.59. Currently, the stock's 50-day moving average is $5.06, while the 200-day moving average is $5.56.

Most recently, TeraWulf published its quarterly earnings results on February 28th. The company reported earnings per share (EPS) of ($0.08), which fell short of the consensus estimate of ($0.04) by $0.04. TeraWulf also recorded a negative net margin of 41.88% and a negative return on equity of 15.91%. In the previous quarter, the company generated revenue of $35 million, which was lower than the consensus estimate of $37.43 million, although it represented a year-over-year growth of 50.2%. Analysts forecast a projected EPS of -0.17 for TeraWulf for the current fiscal year.

Institutional Inflows and Outflows

Recent activity among institutional investors and hedge funds indicates a shift in their positions regarding TeraWulf. For instance, Rosenberg Matthew Hamilton secured a new position in TeraWulf worth approximately $32,000 in the 4th quarter. Meanwhile, FMR LLC increased its stake by 22.0% in the 3rd quarter and now owns 7,803 shares valued at approximately $37,000 after acquiring an additional 1,408 shares. KBC Group NV also entered a new position in TeraWulf worth $39,000 during the 3rd quarter. CoreCap Advisors LLC expanded its holdings by 67.9% in the 4th quarter, accumulating 7,554 shares valued at $43,000 after purchasing an extra 3,054 shares. Lastly, Hodges Capital Management Inc. purchased a new stake in TeraWulf valued at $47,000 in the 3rd quarter. Institutional investors currently control 62.49% of the company's stock.

About TeraWulf

TeraWulf Inc., along with its subsidiaries, operates as a digital asset technology firm in the United States. The company is engaged in the development, ownership, and operation of bitcoin mining facilities located in New York and Pennsylvania. Additionally, TeraWulf provides miner hosting services to third-party entities. Established in 2021, the company is headquartered in Easton, Maryland.

Should You Invest $1,000 in TeraWulf Right Now?

Before making an investment decision about TeraWulf, it's important to consider various expert opinions. Analysts have recognized a "Buy" rating for TeraWulf, but some of the highest-rated analysts have recommended five other stocks that they believe are currently more favorable options.

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