Ready to Jump After Recent Trade: CleanSpark Inc. (CLSK)

CleanSpark Inc. (NASDAQ: CLSK) stock jumped 6.02% on Friday to $2.64 against a previous-day closing price of $2.49. With 4.47 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.2 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $2.6700 whereas the lowest price it dropped to was $2.4750. The 52-week range on CLSK shows that it touched its highest point at $13.91 and its lowest point at $1.74 during that stretch. It currently has a 1-year price target of $8.00. Beta for the stock currently stands at 3.22.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CLSK was down-trending over the past week, with a drop of -1.12%, but this was up by 48.31% over a month. Three-month performance dropped to -10.20% while six-month performance fell -45.73%. The stock lost -62.97% in the past year, while it has gained 29.41% so far this year. A look at the trailing 12-month EPS for CLSK yields -0.85 with Next year EPS estimates of -0.10. For the next quarter, that number is -0.62. This implies an EPS growth rate of -232.20% for this year and 95.00% for next year.

Float and Shares Shorts:

At present, 47.42 million CLSK shares are outstanding with a float of 40.97 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.75 million, which was 14.33% higher than short shares on Sep 14, 2022. In addition to Mr. S. Matthew Schultz as the firm’s Exec. Chairman, Mr. Zachary K. Bradford serves as its CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 32.03% of CLSK’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.95% of CLSK, in contrast to 4.35% held by mutual funds. Shares owned by individuals account for 19.92%. As the largest shareholder in CLSK with 3.71% of the stake, BlackRock Fund Advisors holds 2,658,825 shares worth 2,658,825. A second-largest stockholder of CLSK, The Vanguard Group, Inc., holds 2,267,426 shares, controlling over 3.16% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in CLSK, holding 1,251,973 shares or 1.75% stake. With a 2.90% stake in CLSK, the Invesco Mkts. II Plc – CoinShares is the largest stakeholder. A total of 2,079,776 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.72% of CLSK stock, is the second-largest Mutual Fund holder. It holds 1,947,178 shares valued at 3.97 million. iShares Russell 2000 ETF holds 1.64% of the stake in CLSK, owning 1,173,541 shares worth 2.39 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CLSK since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CLSK analysts setting a high price target of $12.00 and a low target of $5.00, the average target price over the next 12 months is $7.33. Based on these targets, CLSK could surge 354.55% to reach the target high and rise by 89.39% to reach the target low. Reaching the average price target will result in a growth of 177.65% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CLSK will report FY 2023 earnings on 12/20/2023. Analysts have provided yearly estimates in a range of -$0.91 being high and -$3.12 being low. For CLSK, this leads to a yearly average estimate of -$1.96. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CleanSpark Inc. surprised analysts by -$1.05 when it reported -$1.42 EPS against a consensus estimate of -$0.38. The surprise factor in the prior quarter was -$0.24. Based on analyst estimates, the high estimate for the next quarter is -$0.35 and the low estimate is -$0.82. The average estimate for the next quarter is thus -$0.60.

Summary of Insider Activity:

Insiders traded CLSK stock several times over the past three months with 5 Buys and 0 Sells. In these transactions, 374,952 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 4 over the past year. The total number of shares bought during that period was 4,670,338 while 385,860 shares were sold.

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