Hut 8 (NASDAQ:HUT) Stock Rating Upgraded by UBS Group

Key Points

• UBS upgraded Hut 8 to “strong buy,” adding to a broadly positive analyst outlook. The stock has a consensus “Buy” rating and an average price target of $143.95.
• Hut 8 shares opened at $102.46 but were trading down 3.9%; the company’s latest quarter missed expectations, with an adjusted loss of $1.27 per share versus the expected $0.55 loss and revenue of $74.93 million versus $79.37 million expected.
• Investors are weighing Hut 8’s expansion into AI and high-performance computing infrastructure, including its $140 million bid for Poolin’s Texas data centers, against execution, funding, permitting and integration risks.

Hut 8 (NASDAQ:HUT - Get Free Report) was upgraded by equities research analysts at UBS Group to a "strong-buy" rating in a report issued on Wednesday, Zacks reports.

A number of other equities research analysts have also commented on HUT. Loop Capital set a $226.00 price objective on shares of Hut 8 in a report on Monday, June 22nd. Compass Point set a $195.00 target price on Hut 8 in a report on Wednesday, July 22nd. B. Riley Financial lifted their price target on Hut 8 from $130.00 to $163.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Freedom Capital upgraded Hut 8 to a "strong-buy" rating in a report on Tuesday, August 18th. Finally, Needham & Company LLC reduced their price objective on Hut 8 from $145.00 to $138.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Four investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $143.95.

Hut 8 Trading Down 3.9%

NASDAQ:HUT opened at $102.46 on Wednesday. The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35. The business's 50-day simple moving average is $93.27 and its 200-day simple moving average is $90.18. Hut 8 has a fifty-two week low of $31.67 and a fifty-two week high of $140.80. The stock has a market capitalization of $12.63 billion, a PE ratio of -18.80 and a beta of 4.51.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported ($1.27) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.55) by ($0.72). Hut 8 had a negative return on equity of 0.97% and a negative net margin of 188.59%.The business had revenue of $74.93 million for the quarter, compared to the consensus estimate of $79.37 million. During the same period in the previous year, the company posted $1.18 earnings per share. Sell-side analysts expect that Hut 8 will post -2.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Sean Glennan sold 6,445 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $78.76, for a total value of $507,608.20. Following the completion of the transaction, the chief financial officer owned 17,978 shares of the company's stock, valued at approximately $1,415,947.28. This trade represents a 26.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Hut 8

A number of large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in shares of Hut 8 in the second quarter valued at about $1,093,294,000. Sachem Head Capital Management LP acquired a new position in Hut 8 during the fourth quarter valued at approximately $129,780,000. Geode Capital Management LLC boosted its position in Hut 8 by 3.2% during the fourth quarter. Geode Capital Management LLC now owns 2,593,916 shares of the company's stock valued at $119,181,000 after purchasing an additional 79,591 shares during the last quarter. Oasis Management Co Ltd. boosted its position in Hut 8 by 231.5% during the fourth quarter. Oasis Management Co Ltd. now owns 2,307,683 shares of the company's stock valued at $106,015,000 after purchasing an additional 1,611,653 shares during the last quarter. Finally, Avala Global LP bought a new position in Hut 8 in the second quarter valued at approximately $144,602,000. 31.75% of the stock is currently owned by institutional investors and hedge funds.

Hut 8 News Roundup

Here are the key news stories impacting Hut 8 this week:

• Positive Sentiment: Hut 8 won bidding for Poolin’s Texas data centers with a $140 million offer. The acquisition could expand Hut 8’s power and data-center footprint and strengthen its position as it shifts beyond cryptocurrency mining toward AI and high-performance computing. However, investors may also assess the capital requirements and integration risks. The Block article
• Positive Sentiment: UBS initiated coverage of HUT with a Buy rating, along with favorable ratings for other bitcoin miners pursuing AI-related data-center opportunities. The coverage may improve institutional sentiment and supports the view that Hut 8’s infrastructure assets could have value beyond mining. UBS coverage article
• Positive Sentiment: Technical commentary described a bullish breakout above $101.83, with the prior high near $140.80 identified as a potential upside target if momentum continues. FXEmpire forecast
• Neutral Sentiment: Hut 8’s lean management structure and elimination of many traditional executive titles could reduce bureaucracy, though the long-term effect on execution and governance remains unclear. Wall Street Journal article
• Negative Sentiment: Rothschild & Co. Redburn initiated coverage with a Neutral rating and a $96 price target, below the recent trading level. That cautious view may weigh on the stock, particularly given Hut 8’s recent earnings miss and continued losses.
• Negative Sentiment: Local officials in West Feliciana Parish addressed community concerns about a proposed Hut 8 data center, highlighting potential permitting, environmental, infrastructure, or community-relations hurdles for future expansion. WBRZ article

About Hut 8

Hut 8 Corp. NASDAQ: HUT is a North American energy infrastructure and digital asset mining company. The company develops and operates data centers, power-generation resources and other infrastructure that support energy-intensive computing applications, including Bitcoin mining.

Hut 8 also provides services related to digital asset mining and data center operations, while pursuing opportunities in high-performance computing and artificial intelligence infrastructure. Its business is supported by a portfolio of power and data center sites in the United States and Canada.

The company was formed through the combination of Canadian Bitcoin miner Hut 8 Mining Corp.

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