Hut 8 (NASDAQ:HUT) Upgraded by Wells Fargo & Company to "Strong-Buy" Rating

Key Points

• Wells Fargo upgraded Hut 8 to “strong buy,” joining a broadly positive analyst view. MarketBeat reports a consensus “buy” rating and average price target of $146.40.
• Hut 8 opened at $90.99, with a market capitalization of approximately $11.22 billion and a 12-month trading range of $31.67 to $140.80. The stock carries a high beta of 4.51, indicating significant volatility.
• The company missed quarterly expectations, reporting a loss of $1.27 per share versus the estimated $0.55 loss and revenue of $74.93 million versus the $79.37 million consensus. Its CFO sold shares to cover tax withholding obligations, while institutional investors—including the Canada Pension Plan Investment Board—added positions.

Hut 8 (NASDAQ:HUT - Get Free Report) was upgraded by research analysts at Wells Fargo & Company to a "strong-buy" rating in a report issued on Thursday, Zacks reports.

A number of other equities research analysts have also recently commented on HUT. Keefe, Bruyette & Woods lowered their target price on 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 price objective on Hut 8 from $145.00 to $138.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Compass Point set a $195.00 price target on shares of Hut 8 in a report on Wednesday, July 22nd. B. Riley Financial boosted their price objective on Hut 8 from $130.00 to $163.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. Finally, Weiss Ratings lowered shares of Hut 8 from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, August 19th. Four equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $146.40.

Hut 8 Stock Performance

NASDAQ HUT opened at $90.99 on Thursday. The company has a market cap of $11.22 billion, a P/E ratio of -16.70 and a beta of 4.51. The company has a fifty day simple moving average of $93.10 and a 200 day simple moving average of $88.73. The company has a current ratio of 19.35, a quick ratio of 19.35 and a debt-to-equity ratio of 4.22. Hut 8 has a 12-month low of $31.67 and a 12-month high of $140.80.

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

Insider Buying and Selling

In other news, CFO Sean Glennan sold 6,445 shares of the firm's stock in a transaction dated 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 sale, the chief financial officer directly 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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

Hedge funds and other institutional investors have recently modified their holdings of the stock. Canada Pension Plan Investment Board purchased a new stake in shares of Hut 8 in the 2nd quarter worth about $45,301,000. Dimensional Fund Advisors LP boosted its stake in Hut 8 by 11.1% during the first quarter. Dimensional Fund Advisors LP now owns 207,619 shares of the company's stock worth $9,717,000 after acquiring an additional 20,813 shares in the last quarter. Handelsbanken Fonder AB bought a new stake in Hut 8 during the fourth quarter worth about $1,153,000. Dayah Capital LLC grew its holdings in Hut 8 by 12.6% in the first quarter. Dayah Capital LLC now owns 217,920 shares of the company's stock worth $10,223,000 after purchasing an additional 24,456 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in Hut 8 in the first quarter worth about $4,358,000. Hedge funds and other institutional investors own 31.75% of the company's stock.

Hut 8 Company Profile

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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