Bit Digital (NASDAQ: BTBT) has received a significant downgrade from Wall Street Zen, which has shifted its rating from “Hold” to “Sell.” This decision comes as part of a broader reevaluation of the company’s stock by various financial institutions. The downgrade was reported on Saturday, November 18, 2023, reflecting concerns about Bit Digital’s market performance.
Analyst Ratings and Market Performance
Several other brokerages have also recently issued their assessments on Bit Digital. Northland Securities set a price target of $5.00 per share in a report released on November 17, while Weiss Ratings maintained a “Hold (C)” rating for the stock. Conversely, HC Wainwright expressed a more optimistic view by reiterating a “Buy” rating and establishing a price objective of $7.00.
According to data from MarketBeat, Bit Digital currently holds an average rating of “Moderate Buy” with an average price target of $6.00. Notably, two investment analysts have assigned a Buy rating, while one has labeled it a Hold.
Quarterly Financial Results and Insider Transactions
On November 14, 2023, Bit Digital reported its quarterly earnings, revealing a loss of $0.05 earnings per share (EPS). Despite this, the company generated revenue of $30.46 million, surpassing analysts’ expectations of $29.54 million. The company’s net margin stood at an impressive 127.61%, although it reported a negative return on equity of 7.11%.
Looking ahead, analysts project that Bit Digital will post earnings of -0.2 EPS for the current fiscal year. In a separate development, Chief Financial Officer Erke Huang sold 1,089,364 shares of the company on November 20 for an average price of $2.18, totaling approximately $2.37 million. Following this transaction, Huang retains 1,585,636 shares valued around $3.46 million, marking a 40.72% reduction in ownership.
This insider transaction has been disclosed in a document filed with the U.S. Securities and Exchange Commission (SEC), which can be accessed on their official website. It is worth noting that currently, 1.80% of Bit Digital’s stock is owned by company insiders.
Institutional Investor Activity
Institutional investors have also been active in reshaping their positions in Bit Digital. Various hedge funds have recently either increased or reduced their stakes in the company. For instance, Cerity Partners LLC purchased a new stake worth approximately $25,000 during the first quarter. Similarly, Walleye Trading LLC and Sheets Smith Wealth Management both acquired new positions valued at $25,000 and $30,000 in the second and third quarters, respectively.
Additionally, Caitong International Asset Management Co. Ltd significantly grew its stake by 2,892.1%, now holding 15,200 shares valued at $31,000 after acquiring an additional 14,692 shares in the last quarter. Currently, institutional investors hold 47.70% of Bit Digital’s stock.
Bit Digital, Inc. operates in the bitcoin mining sector and is also involved in treasury management, digital asset staking, and related activities. The company additionally provides specialized cloud infrastructure services tailored for artificial intelligence applications.
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