Short interest in WhiteFiber, Inc. (NASDAQ:WYFI) increased significantly in December, rising by 64.4% compared to the previous month. As of December 15, 2023, the total short interest reached 1,797,439 shares, up from 1,093,120 shares on November 30, 2023. This growth represents approximately 4.7% of the company’s total stock, with a days-to-cover ratio of 2.1 days, indicating a substantial level of short selling activity.
The stock opened at $16.57 on the last trading day, significantly below its fifty-day moving average of $22.62. Over the past year, WhiteFiber’s shares have fluctuated, with a low of $13.91 and a high of $40.75. In its most recent quarterly earnings report, released on November 13, 2023, the company reported an earnings per share (EPS) of ($0.47), falling short of analyst expectations by $0.35. Revenue for the quarter totaled $20.18 million, which was below the anticipated $21.18 million but still marked a 64.2% increase compared to the same quarter last year.
Analysts’ Ratings and Price Targets
Brokerage firms have recently adjusted their ratings on WhiteFiber’s stock. Citizens Jmp initiated coverage on November 19, 2023, assigning a “market outperform” rating and setting a price target of $37.00. Following suit, Roth Capital downgraded its target price from $42.00 to $37.00, maintaining a “buy” rating. Other significant ratings include Craig Hallum, which set a price target of $25.00, and UBS Group, which has a price objective of $51.00.
Overall, nine equity research analysts currently rate WhiteFiber as a “Buy,” while one analyst has issued a “Hold” rating and another a “Sell” rating. MarketBeat reports that the stock has a consensus rating of “Moderate Buy” with an average price target of $36.30.
Institutional Investment Activity
Recent activity among institutional investors indicates growing interest in WhiteFiber. Several hedge funds have acquired significant stakes in the company. Monashee Investment Management LLC purchased a stake valued at $9.645 million, while Marshall Wace LLP acquired shares worth approximately $9.105 million. Other notable investments include Wasatch Advisors LP, which invested about $8.382 million, and Clearfield Capital Management LP, with a stake valued at around $6.778 million. Additionally, Vanguard Group Inc. bought shares during the same quarter, totaling approximately $6.563 million.
WhiteFiber positions itself as a leader in the field of artificial intelligence (AI) infrastructure solutions. The company operates high-performance computing (HPC) data centers and provides cloud-based HPC graphics processing units (GPU) services, catering to AI application developers and machine learning (ML) developers. Its Tier-3 data centers offer hosting and colocation services, especially geared towards supporting generative AI workstreams.
As the market continues to respond to these developments, the future trajectory of WhiteFiber remains closely watched by investors and analysts alike. With the recent surge in short interest and fluctuating stock performance, the company’s upcoming strategies and financial results will be crucial in determining its standing in the competitive AI infrastructure landscape.
