TeraWulf shares surge 2.1% amid bullish flow and options activity.

TeraWulf (WULF) shares are up 2.1% near $5.36, with bullish flow and options volume roughly in line with average. Implied volatility is higher by 2.0 points near 105.79, suggesting an expected daily move of $0.36. Put-call skew has flattened, indicating a modestly bullish tone.

TeraWulf Inc. (WULF) shares are up 2.1% near $5.36, with bullish flow and options volume roughly in line with average. Implied volatility is higher by 2.0 points near 105.79, suggesting an expected daily move of $0.36. Put-call skew has flattened, indicating a modestly bullish tone.

The upward movement in TeraWulf's stock price is driven by a combination of factors. Analysts have shown increasing optimism about the company's earnings prospects, with strong agreement among them in revising EPS estimates higher. This optimism is reflected in the mean price target of $7.32, indicating a potential upside of 43.3% [1].

Moreover, TeraWulf recently completed the full acquisition of Beowulf Electricity & Data LLC and its affiliates. This acquisition aims to simplify the company's structure and consolidate resources under a unified operating framework. The total consideration for the acquisition is about $52.4 million, including $3 million in cash and 5 million shares of TeraWulf common stock issued at closing [3].

The integration of Beowulf's capabilities in building and operating power generation assets and electrical infrastructure is expected to support TeraWulf's long-term growth plans, particularly in the high-power compute operations crucial for Bitcoin mining and hosting.

While the consensus price target may not be a reliable indicator of how much TeraWulf could gain, the direction of price movement implied by analysts' estimates appears to be a good guide. The stock's Zacks Rank #2 (Buy) further strengthens this view, indicating that it is in the top 20% of more than 4,000 stocks ranked based on earnings estimates [1].

However, investors should approach price targets with a high degree of skepticism, as analysts' estimates can be influenced by business incentives and may not always reflect the true potential of a stock. It is essential to consider other fundamental factors and conduct thorough research before making investment decisions.

References:
[1] https://www.nasdaq.com/articles/wall-street-analysts-believe-terawulf-wulf-could-rally-4325-heres-how-trade
[2] https://www.ainvest.com/news/amd-shares-surge-1-88-options-volume-surges-upgrade-buy-2507/
[3] https://finance.yahoo.com/news/terawulf-wulf-completes-full-acquisition-162341431.html