Bitfarms (NASDAQ:BITF) Reaches New 12-Month Low - Should You Sell?

The shares of Bitfarms Ltd. (NASDAQ:BITF) hit a new 52-week low during trading on Tuesday. The stock experienced a drop to as low as $1.04 before closing at $1.06, with a trading volume of 3,865,877 shares. Previously, the stock had closed at $1.10.

Analyst Ratings for Bitfarms

Bitfarms has been analyzed by multiple research firms recently. Stifel Canada upgraded Bitfarms’ shares from a "hold" rating to a "moderate buy" rating on November 22nd. On December 4th, Alliance Global Partners started covering Bitfarms, issuing a "buy" rating along with a price target of $6.00. Additionally, Keefe, Bruyette & Woods began their coverage with an "outperform" rating on January 8th. Overall, one analyst rates the stock as a hold, while six analysts have given it a buy rating. According to data from MarketBeat, the average analyst rating is a "Moderate Buy," with a consensus target price set at $4.05.

Bitfarms Stock Performance

Currently, Bitfarms’ stock has seen a decline of 5.0%. The company holds a debt-to-equity ratio of 0.04, indicating low leverage. It has a current ratio of 3.70 and a quick ratio of 3.68. The market capitalization of Bitfarms sits at approximately $500.90 million. The price-to-earnings ratio stands at -2.90, and the stock has a beta of 3.68, suggesting higher volatility compared to the market. In terms of moving averages, the 50-day simple moving average is $1.39 and the 200-day average is $1.78.

Institutional Ownership Trends

Institutional investors have shown interest in Bitfarms, with several increasing their stakes in the company. For instance, Chesapeake Capital Corp IL raised its holdings by 27.9% in the third quarter, obtaining 22,000 shares valued at $50,000. Charles Schwab Investment Management Inc. increased its stake by 9.7%, now holding 1,131,851 shares worth approximately $2.39 million. Other institutional investors, such as Nwam LLC and Zurcher Kantonalbank Zurich Cantonalbank, have also purchased new stakes or increased their holdings in recent months. Currently, about 20.59% of Bitfarms’ stock is owned by institutional investors and hedge funds.

About Bitfarms

Bitfarms Ltd. specializes in cryptocurrency mining operating in countries like Canada, the United States, Paraguay, and Argentina. The company manages server farms that primarily validate transactions on the Bitcoin Blockchain, earning revenue from block rewards and transaction fees. In addition, Bitfarms offers electrician services to both commercial and residential customers in Quebec, Canada.

Should You Invest Now?

Before considering an investment in Bitfarms, it's essential to analyze the stock thoroughly. Although analysts currently have a "Moderate Buy" rating for Bitfarms, there are other stocks that top-rated analysts believe present better investment opportunities. It may be beneficial to review these recommendations before making any financial decisions.

Bitfarms, stocks, mining