Cantor Fitzgerald Issues Pessimistic Forecast for Hut 8 (NASDAQ:HUT) Stock Price

Key Points

• Cantor Fitzgerald lowered Hut 8’s price target to $151 from $180 while maintaining an “overweight” rating, implying nearly 98% upside from the prior close. The broader analyst consensus remains “Buy,” with a $149 target.
• Hut 8 reported weaker-than-expected quarterly results, including an EPS loss of $1.27 versus the $0.55 expected and revenue of $74.93 million versus $79.37 million forecast. Analysts expect a full-year loss of approximately $2.93 per share.
• Insiders sold shares, while major institutions—including BlackRock, Avala Global and Wellington Management—built new positions. Institutional investors collectively own 31.75% of Hut 8, compared with 10.40% insider ownership.

Hut 8 (NASDAQ:HUT - Get Free Report) had its target price decreased by analysts at Cantor Fitzgerald from $180.00 to $151.00 in a report issued on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Cantor Fitzgerald's price target would suggest a potential upside of 98.45% from the company's previous close.

A number of other equities research analysts have also recently commented on the stock. Weiss Ratings cut shares of Hut 8 from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, August 19th. Rothschild & Co Redburn began coverage on shares of Hut 8 in a research note on Monday, September 21st. They set a "neutral" rating and a $96.00 target price for the company. Wall Street Zen lowered Hut 8 from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Loop Capital set a $226.00 price target on Hut 8 in a research report on Monday, June 22nd. Finally, UBS Group reaffirmed a "buy" rating on shares of Hut 8 in a research note on Thursday, October 8th. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $149.00.

Hut 8 Stock Performance

Shares of Hut 8 stock opened at $76.09 on Friday. The firm's fifty day simple moving average is $88.53 and its 200-day simple moving average is $94.38. The stock has a market capitalization of $9.38 billion, a price-to-earnings ratio of -13.96 and a beta of 4.62. Hut 8 has a 12 month low of $31.67 and a 12 month high of $140.80. The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35.

Hut 8 (NASDAQ:HUT - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($1.27) EPS for the quarter, missing the consensus estimate of ($0.55) by ($0.72). Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. The business had revenue of $74.93 million during the quarter, compared to analysts' expectations of $79.37 million. During the same quarter last year, the company earned $1.18 EPS. As a group, equities analysts forecast that Hut 8 will post -2.93 earnings per share for the current year.

Insiders Place Their Bets

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $78.76, for a total transaction of $507,608.20. Following the completion of the transaction, the chief financial officer owned 17,978 shares in the company, valued at approximately $1,415,947.28. This represents a 26.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Mayo A. Shattuck III sold 20,000 shares of the firm's stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the director owned 89,408 shares of the company's stock, valued at $8,940,800. This trade represents a 18.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in HUT. BlackRock Inc. purchased a new stake in Hut 8 in the 2nd quarter valued at approximately $1,093,294,000. Avala Global LP purchased a new position in shares of Hut 8 during the 2nd quarter worth approximately $144,602,000. Wellington Management Group LLP purchased a new position in shares of Hut 8 during the 2nd quarter worth approximately $97,949,000. Montanova Capital LLC acquired a new stake in shares of Hut 8 in the 2nd quarter valued at approximately $77,348,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Hut 8 in the 2nd quarter valued at approximately $56,364,000. 31.75% of the stock is currently owned by institutional investors and hedge funds.

About Hut 8

Hut 8 Corp. NASDAQ: HUT is a North American energy infrastructure and digital asset mining company. Its operations include cryptocurrency mining, with a primary focus on Bitcoin, as well as the development and management of data center infrastructure supported by its energy resources.

The company owns and operates mining and data center facilities in the United States and Canada. In addition to self-mining digital assets, Hut 8 has pursued opportunities in high-performance computing and artificial intelligence infrastructure, using its power capacity, data center sites and related development capabilities to support evolving computing demand.

Hut 8 was originally established as Hut 8 Mining Corp., a Canadian cryptocurrency mining company.

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