IREN (NASDAQ:IREN) Shares Down 6.8% After Earnings Miss

IREN Limited (NASDAQ:IREN) fell 6.8% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $55.41 and last traded at $56.85. 54,623,793 shares traded hands during trading, an increase of 42% from the average session volume of 38,362,145 shares. The stock had previously closed at $60.98.

The company reported ($0.74) earnings per share for the quarter, missing the consensus estimate of ($0.22) by ($0.52). The firm had revenue of $144.80 million during the quarter, compared to analysts’ expectations of $219.69 million. IREN had a negative return on equity of 10.01% and a net margin of 56.59%.

IREN News Summary

Here are the key news stories impacting IREN this week:

• Positive Sentiment: IREN signed a $3.4 billion AI cloud contract with NVIDIA and announced a strategic partnership tied to up to 5GW of AI infrastructure, boosting confidence in its AI transition. IREN Secures $3.4bn AI Cloud Contract with NVIDIA
• Positive Sentiment: NVIDIA’s option to invest up to $2.1 billion at $70 per share is being viewed as a strong endorsement of IREN’s infrastructure value and growth strategy. Nvidia to invest up to $2.1 billion in IREN as part of AI data center deal
• Positive Sentiment: Analysts turned more constructive, with BTIG and HC Wainwright raising targets to $80 and $85, respectively, implying more upside if execution continues. Benzinga analyst target updates
• Neutral Sentiment: IREN reported weaker-than-expected quarterly revenue and a wider net loss, but investors are largely looking past the results and focusing on future AI cloud growth. IREN Limited’s Q3 Net Loss Widens Q/Q, Revenues Decline
• Neutral Sentiment: IREN expanded into Europe by agreeing to acquire Nostrum Group in Spain, adding about 490MW of secured power and a new development pipeline, which supports longer-term growth but still needs to close. IREN Expands AI Cloud Platform to Europe with Acquisition of Nostrum Group
• Negative Sentiment: Despite the upbeat AI narrative, IREN’s traditional Bitcoin-mining business continues to weaken, and the company still faces execution risk, dilution risk from convertibles, and heavy capex demands. IREN: Many Do Not Understand This Stock Is Undervalued Due To Its Assets

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on IREN. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $70.00 price target on shares of IREN in a research note on Tuesday, February 10th. Weiss Ratings downgraded IREN from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, April 22nd. BTIG Research boosted their target price on IREN to $80.00 and gave the stock a “buy” rating in a report on Friday. Wall Street Zen downgraded IREN from a “hold” rating to a “strong sell” rating in a report on Saturday, February 7th. Finally, B. Riley Financial reissued a “buy” rating on shares of IREN in a report on Friday, February 6th. Thirteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $71.23.

Institutional Investors Weigh In On IREN

Several hedge funds have recently added to or reduced their stakes in the stock. CENTRAL TRUST Co boosted its holdings in IREN by 19.8% in the first quarter. CENTRAL TRUST Co now owns 1,485 shares of the company’s stock worth $51,000 after acquiring an additional 245 shares in the last quarter. Vermillion Wealth Management Inc. lifted its holdings in shares of IREN by 19.1% during the first quarter. Vermillion Wealth Management Inc. now owns 2,049 shares of the company’s stock valued at $70,000 after purchasing an additional 328 shares in the last quarter. Centaurus Financial Inc. lifted its holdings in shares of IREN by 1.1% during the third quarter. Centaurus Financial Inc. now owns 31,482 shares of the company’s stock valued at $1,477,000 after purchasing an additional 332 shares in the last quarter. Larson Financial Group LLC lifted its holdings in shares of IREN by 26.7% during the third quarter. Larson Financial Group LLC now owns 1,590 shares of the company’s stock valued at $75,000 after purchasing an additional 335 shares in the last quarter. Finally, Hollencrest Capital Management lifted its holdings in shares of IREN by 50.0% during the first quarter. Hollencrest Capital Management now owns 1,050 shares of the company’s stock valued at $36,000 after purchasing an additional 350 shares in the last quarter. 41.08% of the stock is owned by institutional investors.

IREN Stock Performance

The stock has a market capitalization of $20.34 billion, a P/E ratio of 46.02 and a beta of 4.17. The company has a quick ratio of 4.96, a current ratio of 4.96 and a debt-to-equity ratio of 1.51. The business has a fifty day moving average price of $42.59 and a 200-day moving average price of $46.71.

IREN Company Profile

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.