Compass Point Lowers Core Scientific Price Target to $20.00

Compass Point, a firm specializing in financial research, recently lowered its price target for Core Scientific (NASDAQ:CORZ) from $26.00 to $20.00. This adjustment was made public in a report released on Tuesday, where the firm maintained a "buy" rating on the stock. The revised price target suggests that there is a potential upside of 113.56% based on the current price of the shares.

Core Scientific, a company focused on digital asset mining services in North America, operates through two segments: mining and hosting. It provides blockchain infrastructure and software solutions, alongside managing data center mining facilities. The company also mines digital assets on its own account and offers hosting services for other large bitcoin miners.

Recent Analyst Ratings

Other analysts have also weighed in on Core Scientific recently. Jefferies Financial Group initiated coverage on the stock on October 28th, issuing a "buy" rating with a target price of $19.00. Similarly, analysts from Keefe, Bruyette & Woods began coverage on January 27th, setting an "outperform" rating with a $22.00 target. In another report, Craig Hallum assigned a "buy" rating with a target price of $24.00 on January 21st, while Needham & Company reaffirmed a "buy" rating with a target of $18.00. Roth Capital notably upgraded Core Scientific to a "strong-buy" rating in mid-November. Overall, 15 analysts have given the stock a "buy" rating, while one has assigned a "strong buy" status, leading to a consensus rating of "buy" and an average target price of $19.07 according to MarketBeat.com.

Stock Performance

On the trading day following the report, Core Scientific's stock witnessed a decline of 5.0%, dropping by $0.50 to hit $9.37. The trading volume for the shares reached 13,187,121, surpassing the average volume of 10,956,376. The stock has fluctuated significantly over the past year, with a low of $2.61 and a high of $18.63. Currently, the company holds a market cap of $2.62 billion, and its price-to-earnings ratio stands at -1.73.

Insider Transactions

In related news, there have been notable insider transactions. Todd M. Duchene, an insider, sold 25,277 shares on January 24th at an average price of $16.24, resulting in a total transaction value of approximately $410,498.48. After this transaction, he retains ownership of 2,023,423 shares, valued at $32,860,389.52. Additionally, CEO Adam Taylor Sullivan sold 369,712 shares on the same day, also at an average price of $16.24, totaling approximately $6,004,122.88. Following this sale, he holds 3,758,793 shares, worth around $61,042,798.32. These transactions reflect a 1.23% and 8.96% decrease in their respective ownership in the company. Insiders have collectively sold 614,032 shares in the last three months, which translates to about $9,534,916 in value, with corporate insiders owning 32.00% of the company's stock.

Institutional Holdings

In the past several months, several hedge funds have adjusted their stakes in Core Scientific. Firms like Wellington Shields & Co. LLC and First Horizon Advisors Inc. have increased their investments in the company, acquiring new stakes valued at approximately $26,000 and $34,000, respectively. Newbridge Financial Services Group Inc. invested about $42,000, while Vestcor Inc. and US Bancorp DE purchased shares worth $66,000 and $99,000, respectively, during the fourth quarter.

Conclusion

Core Scientific is a noteworthy player in the digital asset mining space, and with analysts showing generally favorable outlooks despite the recent price target adjustment, it remains to be seen how market conditions will influence the stock's performance moving forward.

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