TLDR
- Bank of America raised its IREN stake by 58.4% in Q1, bringing its holding to 2.14 million shares worth ~$73.3 million
- IREN opened at $41.23, well below its 52-week high of $76.87, with a market cap of $14.73 billion
- The stock trades at a P/E of 85.9x, well above the software industry average of 32.5x
- IREN’s last quarter missed estimates, reporting a $0.25 loss per share against $144.79M revenue vs. the $219.69M consensus
- Analysts hold a “Moderate Buy” consensus with an average price target of $82.71
IREN stock has been drawing institutional attention even as its valuation raises eyebrows. Bank of America increased its position by 58.4% in Q1, now holding 2.14 million shares valued at around $73.3 million. That move came despite the stock sitting at $41.23 on Monday, less than half its 52-week high of $76.87.
It is not just Bank of America moving in. Situational Awareness LP grew its position by 34.5% in Q1, bringing its total to nearly 11.7 million shares worth over $401 million. BNP Paribas and Clear Street Group each opened new positions worth $158.6 million and $137 million respectively. Institutional investors now collectively own 41.08% of the company.
The stock’s 52-week low sits at $17.22, meaning it has still more than doubled from its bottom. Over three years, IREN has returned roughly 6.3x. That kind of run naturally raises the question of how much upside is left.
Valuation Is the Sticking Point
IREN currently trades at a P/E of around 85.9x to 93.2x depending on the measure used. The broader software industry averages 32.5x, and even IREN’s peer group averages 64.2x. Simply Wall St’s fair value P/E estimate sits at roughly 73.2x, putting the stock above even that adjusted benchmark.
On Simply Wall St’s broader valuation checks, IREN passes 0 out of 6. That is a clean sweep in the wrong direction, pointing to a stock that is priced for a lot of things going right.
The $625 million all-stock acquisition of Mirantis, a cloud software company, is central to the bull case. It pushes IREN further into AI and cloud infrastructure, which supports higher long-term revenue projections. But the capital-heavy nature of data centers means cash generation needs to keep pace with ambition.
Earnings Miss and What Analysts Think
IREN’s most recent quarterly results, posted May 8th, did not help the valuation case. The company reported a loss of $0.25 per share, missing the consensus estimate of $0.22. Revenue came in at $144.79 million, well short of the $219.69 million analysts had expected.
For the full fiscal year, analysts expect IREN to post a loss of $1.96 per share.
Analyst ratings are spread across the board. Cantor Fitzgerald rates the stock overweight with a $99 price target. HC Wainwright set a $90 target. Canaccord Genuity holds a buy with a $79 target. JPMorgan, on the other hand, rates it underweight with a target of just $46.
The consensus lands at “Moderate Buy” with an average price target of $82.71, roughly double where the stock currently trades.
The stock has a beta of 4.29, reflecting how much it moves relative to the market. Its 50-day moving average sits at $46.59 and its 200-day at $46.67, both above the current price of $41.23.
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