Hut 8 (NASDAQ:HUT) Stock Rating Raised to "Strong-Buy" at Roth Capital

Key Points

• Roth Capital upgraded Hut 8 to “strong buy,” joining a largely bullish analyst consensus. MarketBeat reports an average rating of “Buy” and an average price target of $145.23.
• Hut 8 shares opened at $79.59, with a market capitalization of approximately $9.81 billion. The stock has traded between $31.67 and $140.80 over the past year and carries high volatility, reflected by a beta of 4.62.
• The company’s latest quarterly results fell short of expectations, with a loss of $1.27 per share versus the $0.55 consensus loss estimate and revenue of $74.93 million versus the $79.37 million forecast. Two insiders also sold shares, while institutional investors own 31.75% of the stock.

Hut 8 (NASDAQ:HUT - Get Free Report) was upgraded by Roth Capital to a "strong-buy" rating in a research report issued to clients and investors on Wednesday, Zacks reports.

HUT has been the topic of a number of other reports. Keefe, Bruyette & Woods decreased their price target on shares of Hut 8 from $157.00 to $154.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Needham & Company LLC decreased their target price on Hut 8 from $145.00 to $138.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. Rosenblatt Securities reiterated a "buy" rating and set a $124.00 price target on shares of Hut 8 in a research report on Wednesday, August 5th. Piper Sandler raised their price objective on Hut 8 from $127.00 to $143.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Finally, Freedom Capital raised shares of Hut 8 to a "strong-buy" rating in a research note on Tuesday, August 18th. Four investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $145.23.

Hut 8 Price Performance

Shares of HUT opened at $79.59 on Wednesday. The company has a market capitalization of $9.81 billion, a P/E ratio of -14.60 and a beta of 4.62. Hut 8 has a fifty-two week low of $31.67 and a fifty-two week high of $140.80. The business's 50-day moving average is $90.54 and its two-hundred day moving average is $93.37. The company has a debt-to-equity ratio of 4.22, a quick ratio of 19.35 and a current ratio of 19.35.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its quarterly earnings data 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 analyst estimates of $79.37 million. During the same period in the previous year, the business posted $1.18 earnings per share. Research analysts predict that Hut 8 will post -2.98 earnings per share for the current year.

Insiders Place Their Bets

In other Hut 8 news, Director Mayo 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 value of $2,000,000.00. Following the completion of the sale, the director directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Sean Glennan sold 6,445 shares of Hut 8 stock in a transaction 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 position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 10.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Hut 8

A number of institutional investors have recently bought and sold shares of HUT. GAMMA Investing LLC boosted its holdings in Hut 8 by 29.9% in the 3rd quarter. GAMMA Investing LLC now owns 1,373 shares of the company's stock valued at $118,000 after purchasing an additional 316 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Hut 8 by 70.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 989 shares of the company's stock worth $85,000 after buying an additional 408 shares during the last quarter. Strong Retirement Solutions LLC purchased a new stake in shares of Hut 8 during the 3rd quarter valued at approximately $2,377,000. Two Seas Capital LP raised its position in shares of Hut 8 by 120.1% during the 3rd quarter. Two Seas Capital LP now owns 347,942 shares of the company's stock valued at $29,958,000 after buying an additional 189,860 shares during the period. Finally, Van Hulzen Asset Management LLC acquired a new position in Hut 8 in the second quarter valued at approximately $225,000. 31.75% of the stock is owned by hedge funds and other institutional investors.

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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