Short interest in WhiteFiber, Inc. (NASDAQ:WYFI) has seen a substantial increase, rising by 64.4% in December. As of December 15, 2023, the total short interest reached 1,797,439 shares, up from 1,093,120 shares reported on November 30. This surge represents approximately 4.7% of the company’s outstanding stock, indicating a growing skepticism among investors regarding the company’s future performance.
The days-to-cover ratio, a metric that indicates how long it would take to cover all short positions based on average daily trading volume, currently stands at 2.1 days. With an average daily volume of 863,942 shares, this figure highlights the increasing interest in short-selling WhiteFiber’s stock.
Price Performance and Earnings Report
On the trading floor, WhiteFiber opened at $16.57 on Friday, reflecting a notable decline from its fifty-day moving average price of $22.62. The stock has experienced volatility over the past year, with a low of $13.91 and a high of $40.75.
In its latest quarterly earnings report, released on November 13, 2023, WhiteFiber reported a loss of ($0.47) earnings per share (EPS), falling short of analysts’ consensus estimates of ($0.12) by ($0.35). Revenue for the quarter was $20.18 million, which also missed projections of $21.18 million, although this marked a significant increase of 64.2% compared to the same quarter last year.
Analyst Ratings and Institutional Activity
Several analysts have weighed in on WhiteFiber’s stock, with mixed opinions. Citizens JMP began coverage on the company, assigning a “market outperform” rating with a price target of $37.00. In contrast, Roth Capital adjusted its target price from $42.00 to $37.00, maintaining a “buy” rating. Craig Hallum also initiated coverage, issuing a “buy” rating with a target of $25.00. Meanwhile, UBS Group set a more ambitious target of $51.00.
The consensus among nine research analysts is a “Moderate Buy,” with an average price target of $36.30. One analyst has rated it a “Hold,” while another has issued a “Sell” rating, indicating a diverse range of opinions in the market.
Institutional investment in WhiteFiber has also shown a positive trend. Numerous hedge funds and institutional investors have recently acquired shares, including Monashee Investment Management LLC, which purchased a stake worth $9,645,000. Other notable investments include Marshall Wace LLP with $9,105,000, Wasatch Advisors LP at $8,382,000, and Vanguard Group Inc., which acquired shares valued at approximately $6,563,000.
WhiteFiber positions itself as a key player in artificial intelligence (“AI”) infrastructure solutions, operating high-performance computing (HPC) data centers and providing cloud-based HPC graphics processing units (GPU) services. This strategic focus on AI and machine learning markets may contribute to its future growth potential, despite the current challenges reflected in its stock performance.
