A History of Outperforming Analyst Forecasts and Beating the Odds: Iris Energy Limited (IREN)

Iris Energy Limited (NASDAQ: IREN) stock fell -6.93% on Tuesday to $3.76 against a previous-day closing price of $4.04. With 1.05 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.84 million shares. During the session, the Capital Markets company that operates in wider Financial sector, reached to the highest price of $4.2900 whereas the lowest price it dropped to was $3.7200. The 52-week range on IREN shows that it touched its highest point at $6.94 and its lowest point at $1.02 during that stretch. It currently has a 1-year price target of $8.17.

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 IREN was down-trending over the past week, with a drop of -4.08%, but this was down by -8.07% over a month. Three-month performance surged to 15.69% while six-month performance rose 98.94%. The stock lost -39.84% in the past year, while it has gained 200.80% so far this year. A look at the trailing 12-month EPS for IREN yields -5.55 with Next year EPS estimates of -0.24. For the next quarter, that number is -0.24. This implies an EPS growth rate of -834.40% for this year and 90.60% for next year.

Float and Shares Shorts:

At present, 53.03 million IREN shares are outstanding with a float of 46.67 million shares on hand for trading. On Apr 27, 2023, short shares totaled 1.05 million, which was 1.91% higher than short shares on Mar 30, 2023. In addition to Mr. William Roberts as the firm’s Co-Founder, Co-CEO & Director, Mr. Daniel Roberts serves as its Co-Founder, Co-CEO & Director.

Institutional Ownership:

Through their ownership of 21.31% of IREN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.79% of IREN, in contrast to 6.88% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in IREN with 4.98% of the stake, Platinum Investment Management Lt holds 2,735,780 shares worth 2,735,780. A second-largest stockholder of IREN, Regal Funds Management Pty Ltd., holds 1,898,415 shares, controlling over 3.45% of the firm’s shares. Van Eck Associates Corp. is the third largest shareholder in IREN, holding 809,583 shares or 1.47% stake. With a 1.36% stake in IREN, the BIT Global Crypto Leaders is the largest stakeholder. A total of 745,687 shares are owned by the mutual fund manager. The Bitwise Crypto Industry Innovator, which owns about 1.19% of IREN stock, is the second-largest Mutual Fund holder. It holds 656,547 shares valued at 2.63 million. Platinum Capital Ltd. holds 1.16% of the stake in IREN, owning 635,717 shares worth 2.54 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Dec 30, 2022, IREN reported revenue of $12.42M and operating income of -$8.34M. The EBITDA in the recently reported quarter was -$6.31M and diluted EPS was -$0.05.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IREN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With IREN analysts setting a high price target of $13.00 and a low target of $5.00, the average target price over the next 12 months is $8.17. Based on these targets, IREN could surge 245.74% to reach the target high and rise by 32.98% to reach the target low. Reaching the average price target will result in a growth of 117.29% 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.