Hut 8 (NASDAQ:HUT) Given New $184.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered its Hut 8 price target to $184 from $275 but maintained an “overweight” rating; the new target implies 228.89% upside from the stock’s cited price.
• Other firms also cut targets, though analyst sentiment remains broadly positive: MarketBeat reports an average “Buy” rating and a $137.45 average price target.
• Hut 8’s latest quarter beat EPS estimates by $1.70, reporting $0.98 per share, but revenue of $71.07 million fell short of the $75.78 million consensus.

Hut 8 (NASDAQ:HUT - Get Free Report) had its price target reduced by equities researchers at Morgan Stanley from $275.00 to $184.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's price target indicates a potential upside of 228.89% from the stock's current price.

HUT has been the topic of a number of other research reports. Rosenblatt Securities decreased their price objective on shares of Hut 8 from $124.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday. B. Riley Financial reiterated a "buy" rating and set a $132.00 target price (down from $134.00) on shares of Hut 8 in a report on Friday. Needham & Company LLC cut their target price on Hut 8 from $138.00 to $101.00 and set a "buy" rating on the stock in a research note on Thursday. Canaccord Genuity Group restated a "buy" rating and set a $130.00 price target on shares of Hut 8 in a report on Wednesday, October 7th. Finally, Cantor Fitzgerald lowered their price target on Hut 8 from $151.00 to $127.00 and set an "overweight" rating for the company in a research report on Thursday. Four research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $137.45.

Hut 8 Trading Up 6.3%

Shares of Hut 8 stock traded up $3.30 on Monday, hitting $55.95. The stock had a trading volume of 1,986,105 shares, compared to its average volume of 5,066,138. The company has a quick ratio of 9.48, a current ratio of 9.48 and a debt-to-equity ratio of 3.84. Hut 8 has a one year low of $31.67 and a one year high of $140.80. The stock has a market cap of $6.72 billion, a price-to-earnings ratio of -11.44 and a beta of 4.53. The stock's 50-day simple moving average is $80.94 and its two-hundred day simple moving average is $82.18.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.98 EPS for the quarter, beating analysts' consensus estimates of ($0.72) by $1.70. The company had revenue of $71.07 million during the quarter, compared to analyst estimates of $75.78 million. Hut 8 had a negative net margin of 169.76% and a negative return on equity of 9.68%. As a group, sell-side analysts predict that Hut 8 will post -1.33 EPS for the current year.

Insider Activity

In related news, CFO Sean Glennan sold 6,445 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $78.76, for a total transaction of $507,608.20. Following the transaction, the chief financial officer owned 17,978 shares in the company, valued at $1,415,947.28. The trade was a 26.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 stock in a transaction dated 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 transaction, the director directly owned 89,408 shares of the company's stock, valued at approximately $8,940,800. The trade was a 18.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in HUT. Arlington Trust Co LLC grew its position in Hut 8 by 175.0% during the second quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock valued at $32,000 after buying an additional 175 shares during the period. GK Wealth Management LLC bought a new position in Hut 8 in the third quarter worth approximately $25,000. Parkside Financial Bank & Trust raised its position in Hut 8 by 258.5% in the second quarter. Parkside Financial Bank & Trust now owns 380 shares of the company's stock worth $44,000 after acquiring an additional 274 shares during the period. Heritage Family Offices LLP purchased a new position in shares of Hut 8 during the 3rd quarter worth $35,000. Finally, CoreCap Advisors LLC boosted its stake in shares of Hut 8 by 42.1% during the 2nd quarter. CoreCap Advisors LLC now owns 540 shares of the company's stock worth $62,000 after acquiring an additional 160 shares during the last quarter. Institutional investors own 31.75% of the company's stock.

About Hut 8

Hut 8 is a North American energy and digital infrastructure company whose businesses include Bitcoin mining, data centers and computing services. It develops and operates facilities that support digital asset mining and other high-performance computing workloads.

The company's services include infrastructure and managed services for Bitcoin mining, as well as data center capacity and computing solutions. Hut 8 also works on developing and operating energy infrastructure to support its facilities.

Hut 8 Corp was formed in 2023 through the merger of Canadian Bitcoin miner Hut 8 Mining Corp.

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