Hut 8 (NASDAQ:HUT) Stock Price Target Lowered at B. Riley Financial

Key Points

• B. Riley Financial lowered Hut 8’s price target from $163 to $134 while maintaining a “buy” rating; the revised target implies approximately 120% upside from the stock’s $60.89 price.
• Hut 8 shares fell 8.4% and remain highly volatile, with a beta of 4.62. The company recently reported a quarterly EPS loss of $1.27, missing estimates by $0.72, and revenue below analyst expectations.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and average price target of $146.77, although insiders recently sold shares and institutional investors own 31.75% of the stock.

Hut 8 (NASDAQ:HUT - Get Free Report) had its price target lowered by analysts at B. Riley Financial from $163.00 to $134.00 in a report issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. B. Riley Financial's target price points to a potential upside of 120.07% from the stock's current price.

HUT has been the subject of a number of other research reports. Morgan Stanley increased their price target on Hut 8 from $273.00 to $275.00 and gave the company an "overweight" rating in a report on Friday, October 9th. Freedom Capital upgraded shares of Hut 8 to a "strong-buy" rating in a research note on Tuesday, August 18th. Weiss Ratings lowered shares of Hut 8 from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, August 19th. Compass Point set a $195.00 target price on shares of Hut 8 in a research report on Wednesday, July 22nd. Finally, Freedom Broker upgraded Hut 8 to a "strong-buy" rating in a research note on Tuesday, August 18th. Four equities 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 given a Sell rating to the stock. According to MarketBeat, Hut 8 has a consensus rating of "Buy" and an average price target of $146.77.

Hut 8 Trading Down 8.4%

NASDAQ:HUT opened at $60.89 on Friday. The stock has a fifty day moving average price of $84.56 and a two-hundred day moving average price of $82.34. Hut 8 has a 1 year low of $31.67 and a 1 year high of $140.80. The company has a debt-to-equity ratio of 4.22, a quick ratio of 19.35 and a current ratio of 19.35. The stock has a market capitalization of $7.51 billion, a price-to-earnings ratio of -11.30 and a beta of 4.62.

Hut 8 (NASDAQ:HUT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($1.27) EPS for the quarter, missing analysts' consensus estimates 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 company had revenue of $74.93 million for the quarter, compared to analyst estimates of $79.37 million. During the same quarter last year, the company posted $1.18 EPS. As a group, sell-side analysts anticipate that Hut 8 will post -2.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Sean Glennan sold 6,445 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $78.76, for a total value of $507,608.20. Following 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 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 shares were sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the transaction, the director owned 89,408 shares in the company, valued at $8,940,800. This represents a 18.28% decrease in their position. The SEC filing for this sale provides additional information. 10.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Arizona State Retirement System lifted its stake in shares of Hut 8 by 0.5% during the second quarter. Arizona State Retirement System now owns 27,320 shares of the company's stock valued at $3,154,000 after acquiring an additional 125 shares during the period. CoreCap Advisors LLC increased its position in Hut 8 by 42.1% in the second quarter. CoreCap Advisors LLC now owns 540 shares of the company's stock worth $62,000 after purchasing an additional 160 shares during the period. Arlington Trust Co LLC raised its holdings in Hut 8 by 175.0% during the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock worth $32,000 after purchasing an additional 175 shares during the last quarter. Allworth Financial LP raised its holdings in Hut 8 by 18.5% during the 2nd quarter. Allworth Financial LP now owns 1,364 shares of the company's stock worth $157,000 after purchasing an additional 213 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in Hut 8 by 35.0% during the 2nd quarter. GAMMA Investing LLC now owns 1,057 shares of the company's stock valued at $122,000 after purchasing an additional 274 shares during the period. 31.75% of the stock is currently owned by institutional investors and hedge funds.

About Hut 8

Hut 8 Corp. is a North American energy infrastructure and computing company whose business includes digital asset mining, high-performance computing and data center operations. The company develops and manages power and infrastructure assets intended to support energy-intensive computing applications.

Hut 8's activities have historically centered on Bitcoin mining, supported by company-operated data centers and specialized mining equipment. It also provides infrastructure for emerging computing applications, including artificial intelligence and other high-performance computing workloads, as it seeks to expand beyond cryptocurrency mining.

The company was established in Canada and expanded its operations in the United States through its combination with U.S.

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