IREN Stock: The Comeback Continues as Earnings Date Approaches

TLDR

• IREN stock jumped 5.9% to $55.34 on Friday with trading volume of 14.8 million shares, down 62% from average daily volume.
• The company missed earnings expectations at -$0.34 per share versus $0.14 estimated but posted revenue of $240.3 million, up 28.3% year-over-year.
• Tradr ETFs launched a new 2x short ETF (ticker IREZ) targeting IREN on Thursday, offering bearish investors leveraged downside exposure.
• Analysts maintain a Moderate Buy rating with 13 buy ratings, 5 holds, and 1 sell, setting a consensus price target of $69.36.
• IREN will report quarterly earnings for the period ending December 31 on February 5 at 5 p.m. Eastern time.

IREN shares climbed 5.9% during Friday trading, closing at $55.34 as investors positioned ahead of the company’s upcoming quarterly report. The stock traded as high as $55.30 with volume reaching 14.8 million shares.

IREN Limited, IREN

Trading volume dropped 62% compared to the average daily volume of 39.4 million shares. The stock closed the previous session at $52.26 before Friday’s gain.

Early afternoon action saw even stronger movement, with shares touching $58.37 at their peak. The stock fluctuated between $50.14 and $58.37 as more than 34 million shares changed hands during that period.

IREN announced Thursday it will release financial results for the quarter ending December 31 on February 5. A conference call is scheduled for 5 p.m. Eastern time following the release.

The company missed earnings expectations in its last quarterly report on November 6. IREN posted a loss of $0.34 per share versus analyst estimates calling for earnings of $0.14 per share.

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Revenue came in at $240.3 million, slightly below the $244.6 million consensus estimate. However, revenue grew 28.3% compared to the same quarter last year.

New Short ETF Enters The Market

Tradr ETFs launched a 2x short ETF linked to IREN on Thursday, trading under ticker IREZ. The product aims to deliver -200% of IREN’s daily stock movement.

“We are excited to bring these inverse exposures to the market so that traders can efficiently express a high conviction bearish view,” said Matt Markiewicz, head of product and capital markets at Tradr. The fund resets daily and may not track longer-term performance accurately.

Tradr also launched inverse funds for Applied Digital, Lucid, and Nebius at the same time. The new products give bearish traders leveraged tools to bet against these stocks.

The launch comes as bitcoin prices climbed roughly 1.5% to around $90,800 on Friday. Marathon Digital gained 4.6% while Riot Platforms added 5.0% in the crypto mining sector.

Analyst Views Remain Split

Thirteen analysts rate IREN as a buy while five have hold ratings and one recommends selling. The consensus rating sits at Moderate Buy with a target price of $69.36.

Individual price targets range widely from $39 to $105. Goldman Sachs initiated coverage in December with a neutral rating and $39 target.

Compass Point maintains a buy rating with a $105 price target set in November. Roth Mkm also rates the stock a buy with a $94 target.

The stock currently trades above both its 50-day moving average of $45.20 and 200-day moving average of $39.71. IREN carries a market cap of $16.47 billion with a debt-to-equity ratio of 0.34.

The company operates bitcoin mining data centers and is shifting focus toward AI cloud services. The business model relies on graphics processing units that power AI training alongside energy-intensive mining operations.

Institutional investors own 41.08% of the company’s stock. Several funds increased their positions during the second quarter including Wealth Enhancement Advisory Services and Farther Finance Advisors.

IREN reported a negative return on equity of 3.60% and net margin of 86.96% in its last quarter. Analysts forecast earnings of $0.43 per share for the current fiscal year.