Bitfarms (TSE:BITF) Hits New 1-Year Low - What's Next?

On Friday, Bitfarms Ltd. (TSE:BITF) experienced a significant decline, reaching a new 52-week low. The stock price sunk to as low as C$1.83 before finally ending the day at C$1.85, with a total trading volume of 1,750,877 shares. Prior to this drop, Bitfarms had closed at C$1.98.

Wall Street Analyst Insights

In a recent research note dated November 14th, ATB Capital revised its price target for Bitfarms, lowering it from C$7.00 to C$6.50.

Bitfarms Shares Down 5.6%

Currently, Bitfarms holds a debt-to-equity ratio of 4.68, indicating a significantly leveraged position. The company has a quick ratio of 0.63 and a current ratio of 3.70. Recent trading metrics include a 50-day moving average of C$2.27 and a 200-day moving average of C$2.67. Bitfarms has a market capitalization of C$655.85 million and a price-to-earnings ratio of -4.21, which suggests financial losses. The stock's beta stands at 3.20, indicating a high volatility compared to the market.

Insider Trading Activity

In recent insider trading news, Philippe Fortier, a Senior Officer, acquired 25,000 shares of Bitfarms on December 24th for an average price of C$2.36 per share, totaling about C$59,000. Conversely, Director Brian Howlett sold 30,000 shares on December 19th at an average price of C$2.44, yielding C$73,200. Over the past ninety days, insiders have purchased a total of 102,760 shares valued at approximately C$236,450. Overall, corporate insiders now hold about 23.38% of the company's shares.

About Bitfarms

Bitfarms Ltd. focuses on the mining of cryptocurrency, with operations in Canada, the United States, Paraguay, and Argentina. The company manages server farms that facilitate Bitcoin transactions and earn cryptocurrency through block rewards and transaction fees. Additionally, Bitfarms provides electrical services to commercial and residential clients in Quebec, Canada.

Investment Considerations

If you are contemplating an investment in Bitfarms, it may be worth exploring the views of financial analysts. While analysts have rated Bitfarms as a "Buy," there are other stocks that are gaining more analyst favor as potential investment opportunities. It could be beneficial to research further before making decisions.

Bitfarms, stocks, crypto