IREN (NASDAQ:IREN) Trading Down 7% – Time to Sell?

IREN Limited (NASDAQ:IREN)’s stock price dropped 7% on Tuesday . The stock traded as low as $42.91 and last traded at $42.93. Approximately 34,899,697 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 46,336,063 shares. The stock had previously closed at $46.15.

Key Stories Impacting IREN

Here are the key news stories impacting IREN this week:

• Positive Sentiment: Big strategic win — IREN’s pivot into AI infrastructure with a contract tied to Microsoft materially repositions the company toward high-growth, higher-margin AI cloud spending, improving its long-term addressable market despite elevating execution risk. IREN Pivot To AI Infrastructure With Microsoft Contract Reshapes Risk Profile
• Positive Sentiment: Analyst support — Canaccord reaffirmed a “buy” and a $70 price target, signaling confidence in IREN’s upside tied to its AI/cloud pivot (implies significant potential upside from current levels). Canaccord Reaffirms Buy on IREN
• Positive Sentiment: Sector tailwinds — multiple industry pieces highlight rising big-tech AI capex and a bullish case for AI infrastructure providers, supporting a favorable market backdrop for IREN’s new strategic focus. CAPEX & Cash Flow: The Bull Case for AI Infrastructure Stocks
• Positive Sentiment: Stock-selection interest — industry write-ups naming AI infrastructure stocks that could outperform (including IREN in thematic coverage) can attract new investor flows into the name. 3 AI Infrastructure Stocks That Can Outperform Nvidia Over The Next 5 Years
• Neutral Sentiment: Mixed analyst tweaks — Macquarie trimmed its price target to $70 but kept an Outperform rating, a modestly cautious signal that still endorses long-term upside while acknowledging near-term uncertainty. Macquarie Lowers Iren PT to $70
• Neutral Sentiment: Analyst discussion is mixed — coverage noting surging AI-cloud momentum is tempered by concerns about competition and valuation, suggesting a cautious “hold” posture for some investors. Should You Buy, Sell or Hold IREN Stock Post Q2 Earnings?
• Negative Sentiment: Recent fundamentals weigh — IREN’s last quarter missed EPS and revenue expectations, with revenues down ~23% year-over-year, which keeps near-term investor skepticism and pressure on the stock until growth and margins stabilize.

Analyst Ratings Changes

Several equities research analysts have weighed in on IREN shares. Cantor Fitzgerald decreased their price target on shares of IREN to $82.00 and set an “overweight” rating for the company in a research note on Friday. B. Riley Financial reaffirmed a “buy” rating on shares of IREN in a research note on Friday. JMP Securities set a $80.00 price objective on IREN in a report on Wednesday, November 19th. HC Wainwright upgraded IREN from a “sell” rating to a “buy” rating and set a $80.00 price target for the company in a report on Tuesday, January 13th. Finally, BTIG Research increased their price target on IREN from $32.00 to $75.00 and gave the company a “buy” rating in a research report on Tuesday, October 14th. Thirteen analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, IREN presently has a consensus rating of “Moderate Buy” and an average price target of $72.29.

IREN Price Performance

The stock has a market cap of $12.17 billion, a P/E ratio of 32.28 and a beta of 4.26. The business has a 50 day simple moving average of $46.44 and a 200-day simple moving average of $42.95. The company has a debt-to-equity ratio of 1.51, a quick ratio of 4.96 and a current ratio of 4.96.

IREN (NASDAQ:IREN) last issued its quarterly earnings results on Thursday, February 5th. The company reported ($0.44) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.37). The company had revenue of $184.69 million during the quarter, compared to analysts’ expectations of $229.64 million. IREN had a negative return on equity of 10.01% and a net margin of 56.59%.IREN’s quarterly revenue was down 23.1% on a year-over-year basis. On average, sell-side analysts forecast that IREN Limited will post 0.43 EPS for the current year.

Institutional Trading of IREN

Hedge funds have recently made changes to their positions in the company. Vanguard Personalized Indexing Management LLC lifted its position in shares of IREN by 16.2% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 21,160 shares of the company’s stock valued at $308,000 after buying an additional 2,952 shares during the last quarter. Allianz Asset Management GmbH bought a new stake in IREN in the 2nd quarter valued at about $10,743,000. Hartline Investment Corp purchased a new stake in IREN during the second quarter valued at about $228,000. Chicago Partners Investment Group LLC lifted its stake in shares of IREN by 14.4% during the 2nd quarter. Chicago Partners Investment Group LLC now owns 75,508 shares of the company’s stock valued at $1,100,000 after buying an additional 9,492 shares in the last quarter. Finally, Drive Wealth Management LLC raised its holdings in IREN by 3.0% during the 2nd quarter. Drive Wealth Management LLC now owns 40,924 shares of the company’s stock valued at $596,000 after acquiring an additional 1,179 shares during the period. 41.08% of the stock is currently owned by institutional investors.

IREN Company Profile

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.