JonesTrading Sticks to Buy Rating for TeraWulf Inc Despite Negative Insider Sentiment

JonesTrading analyst Stephen Glagola maintained a Buy rating and $12 price target for TeraWulf Inc, despite a negative corporate insider sentiment. The stock has a Strong Buy analyst consensus rating and a $10.20 average price target, a 13.71% upside from current levels. WULF market cap is $3.41B and has a P/E ratio of -25.33.

TeraWulf Inc. (WULF) has been the subject of increased analyst attention following its second-quarter (Q2) 2025 earnings report and a strategic pivot towards high-performance computing (HPC) hosting. The company reported a net loss of $18.4 million, up 65% from the same period last year, and an earnings per share (EPS) loss of $0.047, deteriorating from $0.033 in Q2 2024 [1]. Despite these losses, revenue grew by 34% to $47.6 million, missing analyst estimates by 3.0% [1].

The company's shares have been volatile, closing at $5.03 on July 1, 2025, with a one-year high of $9.30 and a one-year low of $2.06 [1]. Analysts have provided mixed reactions to the earnings. KBW recently assigned a Hold rating to TeraWulf with a price target of $6.50, despite corporate insider activity showing a negative sentiment with 69 insiders selling their shares over the past quarter [1]. Rosenblatt Securities analyst Chris Brendler reiterated a Buy rating on TeraWulf Inc. with a price target of $10.50 [3]. Citizens JMP analyst Greg Miller raised the firm's price target to $13 from $7, reiterating an "Outperform" rating [4]. JonesTrading analyst Stephen Glagola maintained a Buy rating and a $12 price target for TeraWulf Inc [5].

Looking ahead, TeraWulf is expected to recognize revenue from HPC hosting starting in Q3, which could mark a key inflection point in its financial profile [3]. The company has also seen strong demand from enterprise and hyperscale customers for low-cost, zero-carbon compute infrastructure [3]. However, the company's adjusted EBITDA declined from $19.5 million in Q2 2024 to $14.5 million in Q2 2025 [3].

The overall outlook for TeraWulf appears positive, contingent on the successful execution of its strategic pivot towards HPC hosting. The company's ability to leverage its existing infrastructure and expertise in power management will be critical in attracting and retaining HPC clients. Yesterday's announcement of contracts with Fluidstack, backed by Google, and spanning 10 years, was a big step for the firm. This deal represents approximately $3.7 billion in contracted revenue, injecting considerable optimism into the company's outlook [4].

References:
[1] https://finance.yahoo.com/news/terawulf-second-quarter-2025-earnings-141522266.html
[2] https://seekingalpha.com/news/4481563-terawulf-q2-2025-earnings-preview
[3] https://seekingalpha.com/news/4482579-terawulf-stock-rises-after-q2-loss-slightly-better-than-feared-amid-hpc-expansion
[4] https://www.theglobeandmail.com/investing/markets/stocks/WULF/pressreleases/34200937/analysts-are-bullish-on-top-financial-stocks-terawulf-inc-wulf-blaize-holdings-bzai/
[5] https://www.asktraders.com/analysis/nasdaqwulf-terawulf-price-target-raised-as-analyst-supports-pivot/