IREN (NASDAQ:IREN) Stock Price Down 9.9% on Disappointing Earnings

IREN Limited (NASDAQ:IREN) shares dropped 9.9% during trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $52.36 and last traded at $55.15. Approximately 108,628,471 shares traded hands during mid-day trading, an increase of 170% from the average daily volume of 40,266,898 shares. The stock had previously closed at $61.20.

The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.22) by ($0.03). The firm had revenue of $144.80 million for the quarter, compared to the consensus estimate of $219.69 million. IREN had a net margin of 20.90% and a negative return on equity of 13.49%.

IREN News Summary

Here are the key news stories impacting IREN this week:

• Positive Sentiment: BTIG raised its price target on IREN, reflecting continued optimism around the company’s long-term AI infrastructure opportunity. BTIG Research Increases IREN Price Target to $80.00
• Positive Sentiment: IREN’s strategic partnership with NVIDIA to build up to 5 gigawatts of AI infrastructure remains a major growth catalyst and helped drive the recent surge in the stock. Iren just landed a data center deal with Nvidia. Its stock is soaring.
• Neutral Sentiment: JPMorgan lifted its price target to $46 from $39, but kept an Underweight rating, implying the firm still sees downside risk despite the higher target. JPMorgan Hikes IREN Price Target to $46 but Stays Underweight on Circular NVIDIA Deal Concerns
• Neutral Sentiment: Analysts and market commentary suggest part of the pullback may simply be profit-taking after the sharp run-up tied to the NVIDIA announcement. Iren’s stock pulls back as investors assess the steep price of the AI buildout
• Negative Sentiment: IREN’s proposed $2 billion convertible notes offering raised concerns about higher leverage and potential shareholder dilution, pressuring the stock in premarket trading. IREN Announces Proposed Convertible Notes Offering

Analysts Set New Price Targets

IREN has been the subject of several analyst reports. JPMorgan Chase & Co. raised their price target on shares of IREN from $39.00 to $46.00 and gave the company an “underweight” rating in a research report on Monday. Canaccord Genuity Group reissued a “buy” rating and set a $70.00 price target on shares of IREN in a research report on Tuesday, February 10th. Wall Street Zen downgraded shares of IREN from a “hold” rating to a “strong sell” rating in a research report on Saturday, February 7th. The Goldman Sachs Group reiterated a “neutral” rating and set a $44.00 target price on shares of IREN in a research note on Friday. Finally, Cantor Fitzgerald decreased their target price on shares of IREN to $61.00 and set an “overweight” rating for the company in a research note on Thursday, April 9th. Thirteen analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, IREN presently has an average rating of “Moderate Buy” and an average target price of $71.77.

Institutional Investors Weigh In On IREN

Hedge funds have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC purchased a new stake in IREN during the 3rd quarter valued at $25,000. Miller Wealth Advisors LLC raised its stake in IREN by 240.0% during the 4th quarter. Miller Wealth Advisors LLC now owns 680 shares of the company’s stock valued at $26,000 after buying an additional 480 shares during the last quarter. North Star Investment Management Corp. purchased a new stake in IREN during the 4th quarter valued at $26,000. Clearstead Trust LLC purchased a new stake in IREN during the 4th quarter valued at $27,000. Finally, Aventura Private Wealth LLC purchased a new stake in IREN during the 4th quarter valued at $28,000. 41.08% of the stock is currently owned by hedge funds and other institutional investors.

IREN Stock Performance

The firm has a market capitalization of $18.33 billion, a PE ratio of 114.90 and a beta of 4.17. The company has a current ratio of 4.96, a quick ratio of 4.96 and a debt-to-equity ratio of 1.51. The business’s 50 day simple moving average is $42.59 and its two-hundred day simple moving average is $46.71.

About IREN

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.