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

Shares of IREN Limited (NASDAQ:IREN) fell 6.8% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $55.41 and last traded at $56.85. 54,623,793 shares changed 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 (EPS) for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.52). IREN had a negative return on equity of 10.01% and a net margin of 56.59%.The company had revenue of $144.80 million for the quarter, compared to analysts’ expectations of $219.69 million.

IREN News Roundup

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

Analyst Upgrades and Downgrades

Several brokerages have commented on IREN. Wall Street Zen cut IREN from a “hold” rating to a “strong sell” rating in a report on Saturday, February 7th. B. Riley Financial reaffirmed a “buy” rating on shares of IREN in a report on Friday, February 6th. HC Wainwright lifted their price objective on IREN to $85.00 and gave the stock a “buy” rating in a report on Friday. Cantor Fitzgerald decreased their price objective on shares of IREN to $61.00 and set an “overweight” rating on the stock in a research report on Thursday, April 9th. Finally, Canaccord Genuity Group reiterated a “buy” rating and issued a $70.00 price objective on shares of IREN in a research report on Tuesday, February 10th. Thirteen equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $71.23.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Oslo Pensjonsforsikring AS purchased a new position in shares of IREN during the 1st quarter worth about $59,000. Hollencrest Capital Management lifted its holdings in shares of IREN by 50.0% during the 1st quarter. Hollencrest Capital Management now owns 1,050 shares of the company’s stock worth $36,000 after acquiring an additional 350 shares during the period. KBC Group NV purchased a new position in shares of IREN during the 1st quarter worth about $1,055,000. SEB Asset Management AB purchased a new position in shares of IREN during the 1st quarter worth about $2,276,000. Finally, Swiss National Bank purchased a new position in shares of IREN during the 1st quarter worth about $33,032,000. Hedge funds and other institutional investors own 41.08% of the company’s stock.

IREN Stock Up 7.7%

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 firm has a market capitalization of $20.34 billion, a PE ratio of 46.02 and a beta of 4.17. The firm has a 50-day moving average of $42.59 and a two-hundred day moving average of $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.