Solana (NASDAQ:HSDT – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.05), Zacks reports. Solana had a negative net margin of 1,302.78% and a negative return on equity of 41.86%.
Here are the key takeaways from Solana’s conference call:
- Third-quarter revenue rose to $3.4 million from $2.5 million in the prior quarter, with staking rewards contributing $3.3 million. Pacific Backbone had 1 million SOL in third-party stake at quarter end, growing to approximately 1.5 million by November 3.
- Treasury staking yield averaged 5.9% APY, 100 basis points above the network average. Management said it expects to maintain an outperformance gap, though the size may fluctuate as staking economics and validator performance change.
- The company repurchased 1.4 million shares below net asset value during the quarter, then raised approximately $14.3 million net in an offering priced at a 5% premium to NAV and used the proceeds to buy about 125,000 SOL. Management said both actions were intended to increase SOL per share.
- Reported third-quarter net income was $105.2 million, but it included a $102.7 million unrealized gain on digital assets, largely reflecting SOL’s price recovery; the gain was non-cash. Management said operating costs were at their lowest level yet, while expenses may rise from the current rate as the business grows and third-party stake growth may slow in the fourth quarter.
Solana Price Performance
Shares of HSDT traded up $0.04 during trading hours on Wednesday, hitting $1.86. The company’s stock had a trading volume of 773,432 shares, compared to its average volume of 401,263. The business has a 50 day simple moving average of $2.37 and a two-hundred day simple moving average of $2.07. Solana has a 52-week low of $1.19 and a 52-week high of $5.46. The company has a market cap of $112.98 million, a price-to-earnings ratio of -0.06 and a beta of 1.10.
Wall Street Analyst Weigh In
Several brokerages have issued reports on HSDT. Wall Street Zen lowered Solana from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Solana in a research report on Thursday, October 15th. Finally, B. Riley Financial increased their price target on Solana from $3.50 to $4.00 and gave the stock a “buy” rating in a research note on Tuesday, September 22nd. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $4.00.
Check Out Our Latest Analysis on HSDT
Solana Company Profile
Solana is a digital asset company focused on building a treasury centered on Solana’s native cryptocurrency, SOL. Its activities include acquiring and holding SOL and developing strategies intended to provide investors with exposure to the Solana blockchain ecosystem through a publicly traded company. The company is associated with the Solana network, a blockchain platform designed to support decentralized applications, digital assets and smart contracts. Its business may also include participating in the broader Solana ecosystem and pursuing opportunities related to blockchain infrastructure and digital asset growth.
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