IREN Limited (IREN) is taking a breather Monday after a wild ride that's seen shares drop more than 21% over the past month. But zoom out a bit, and the picture looks entirely different: the stock is still up a staggering 343.6% year-to-date, putting it firmly in the "big winner" category for 2024.
So what's behind the recent consolidation? Let's break it down.
Earnings Beat Sparks Mixed Analyst Reactions
On November 6, IREN delivered first quarter results that absolutely crushed expectations. The company reported earnings per share of $1.08, demolishing the consensus estimate of just 14 cents. Revenue came in at $240.29 million, topping forecasts of $235.50 million.
Those are impressive numbers, but analysts had varying reactions. Cantor Fitzgerald's Brett Knoblauch maintained an Overweight rating but trimmed his price target from $142 to $136. Meanwhile, HC Wainwright's Mike Colonnese maintained a Sell rating while raising his target from $45 to $56. The consensus price target sits at $54.00, though the range is enormous, spanning from $10 to $136.
The Technical Picture
IREN is currently trading around $46.36, positioned within its 52-week range of $5.12 to $76.87. That massive range tells you everything about the volatility this stock has experienced.
The stock is trading about 11.7% below its 50-day moving average of $52.54, suggesting a short-term pullback after an extended rally. But here's the interesting part: it's still trading roughly 110.8% above its 200-day moving average of $22.01. That's a long-term bullish trend if there ever was one.
The relative strength index sits at 39.14, indicating neutral territory. The stock isn't overbought or oversold right now, which means it could move in either direction depending on market sentiment and broader conditions.
Key Levels to Watch
Traders are eyeing two critical price points. Support sits at $44.95, which could provide a floor if selling pressure continues. If IREN holds above that level, it might set up for a rebound. On the flip side, resistance is pegged at $49.38. A break above that could signal renewed buying interest and potentially lead to a test of the psychologically important $50 level.
With a market capitalization of $13.14 billion, IREN ranks among the largest companies in its sector. That size could attract institutional investors, particularly if the stock regains momentum and pushes through resistance. A decisive move above $49.38 could open the door for further gains, while a drop below $44.95 would be a warning sign for bulls.
For now, IREN appears to be catching its breath after a phenomenal run. Whether this consolidation leads to another leg higher or a deeper pullback will likely depend on those key technical levels and broader market conditions.