TLDR
- TeraWulf stock climbed 7.7% to $13.88 on Friday, snapping a three-day slide and moving above both 50-day and 200-day moving averages.
- Keefe, Bruyette, and Woods upgraded the stock to outperform with a $24 price target, up from $9.50, citing the company’s HPC pivot.
- The company missed Q3 earnings badly with -$1.13 EPS versus -$0.04 consensus and revenue of $50.6M below the $56.27M estimate.
- Wall Street shows bullish sentiment with 12 Buy ratings and a $19.15 average price target despite one Sell rating.
- Director Michael C. Bucella bought 4,178 shares at $12.01 in November, bringing his total ownership to 266,958 shares.
TeraWulf shares surged 7.7% in Friday trading, closing at $13.88. The gain reversed three straight sessions of declines.
Volume came in lighter than usual at 14.55 million shares. The stock typically trades around 21.51 million shares daily.
The price now sits comfortably above technical support levels. TeraWulf trades above its 50-day moving average of $13.20 and 200-day moving average of $10.98.
Market capitalization stands at $5.79 billion. The stock carries a high beta of 3.69, reflecting above-average volatility.
Wall Street Sees Upside Potential
Analyst coverage remains predominantly positive. Twelve firms rate TeraWulf as a Buy, while one maintains a Hold and one keeps a Sell rating.
The average price target across all analysts sits at $19.15. This implies further upside from current levels.
Keefe, Bruyette, and Woods made the most dramatic call. The firm upgraded TeraWulf from market perform to outperform.
Their new price target of $24 represents a sharp increase from the previous $9.50 target. KBW believes the market undervalues TeraWulf’s transition to high-performance computing.
The firm projects massive EBITDA expansion. KBW expects 505% compound annual growth through 2027 based on existing lease agreements.
Needham & Company maintains its Buy rating with a $21 target. This suggests 48.7% potential upside from Friday’s close.
Other firms also raised targets recently. Citizens Jmp increased its forecast to $22 from $18, while B. Riley bumped its target to $23 from $22.
Earnings Results Disappoint
TeraWulf reported third quarter results on November 10th. The company posted -$1.13 earnings per share, missing the -$0.04 consensus by a wide margin.
Revenue came in at $50.58 million. Analysts had projected $56.27 million in quarterly revenue.
Despite missing estimates, revenue grew 86.9% compared to last year. This demonstrates strong top-line expansion even as the company transitions its business model.
The balance sheet shows leverage concerns. TeraWulf maintains a debt-to-equity ratio of 4.45.
Return on equity stands at negative 69.75%. Net margin also remains deeply negative at 336.53%.
Quick and current ratios both register at 1.03. These figures suggest adequate short-term liquidity.
Insider and Institutional Activity
Director Michael C. Bucella purchased shares in November. He acquired 4,178 shares at an average price of $12.01 each.
The transaction totaled $50,177.78. Bucella now holds 266,958 shares directly, representing a 1.59% increase in his position.
Corporate insiders collectively own 19.90% of outstanding shares. This level of insider ownership often signals confidence in the company’s direction.
Institutional investors made several moves in the fourth quarter. Sippican Capital Advisors more than doubled its position, adding 38,000 shares to reach 71,650 total.
Kraematon Investment Advisors increased its stake by 2.3% to 42,452 shares. Blue Square Asset Management and Royal Fund Management both initiated new positions.
Institutional ownership totals 62.49% of all shares. This concentration suggests professional investors see value in TeraWulf’s business transformation.
Friday’s rally matched broader tech sector strength. Improved U.S.-Europe relations boosted investor appetite for growth stocks.
TeraWulf gained alongside peers Applied Digital and IREN. All three benefit from surging demand for AI computing infrastructure.
