Piper Sandler Issues Pessimistic Forecast for Hut 8 (NASDAQ:HUT) Stock Price

Key Points

• Piper Sandler lowered Hut 8’s price target from $143 to $123 while maintaining an “overweight” rating, implying about 80% upside from the stock’s $68.17 price.
• Despite the cut, analyst sentiment remains broadly positive: Hut 8 has a consensus “Buy” rating and an average price target of $148.09, although ratings range from “Strong Buy” to “Sell.”
• Hut 8 reported a quarterly loss of $1.27 per share, missing the $0.55 consensus estimate, while revenue of $74.93 million also fell short of expectations.

Hut 8 (NASDAQ:HUT - Get Free Report) had its price target decreased by stock analysts at Piper Sandler from $143.00 to $123.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Piper Sandler's price target would indicate a potential upside of 80.43% from the company's current price.

Other analysts have also issued research reports about the company. Canaccord Genuity Group reissued a "buy" rating and set a $130.00 price objective on shares of Hut 8 in a report on Wednesday, October 7th. Loop Capital set a $226.00 target price on Hut 8 in a research report on Monday, June 22nd. Freedom Broker 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. Finally, Cantor Fitzgerald lowered their price target on shares of Hut 8 from $180.00 to $151.00 and set an "overweight" rating on the stock in a report on Friday. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $148.09.

Hut 8 Stock Performance

NASDAQ:HUT opened at $68.17 on Tuesday. The firm's 50-day moving average is $87.77 and its 200-day moving average is $94.71. The company has a market cap of $8.40 billion, a price-to-earnings ratio of -12.51 and a beta of 4.62. 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 has a 52-week low of $31.67 and a 52-week high of $140.80.

Hut 8 (NASDAQ:HUT - Get Free Report) last released its earnings results 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). Hut 8 had a negative return on equity of 0.97% and a negative net margin of 188.59%. The firm had revenue of $74.93 million for the quarter, compared to analyst estimates of $79.37 million. During the same period last year, the business earned $1.18 earnings per share. Equities research analysts anticipate that Hut 8 will post -2.93 earnings per share for the current year.

Insider Buying and Selling

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of the company's 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 sale, the chief financial officer directly owned 17,978 shares in the company, valued at $1,415,947.28. This represents a 26.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at 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 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 transaction, the director owned 89,408 shares of the company's stock, valued at $8,940,800. This represents a 18.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 10.40% of the company's stock.

Institutional Investors Weigh In On Hut 8

Institutional investors and hedge funds have recently made changes to their positions in the company. GK Wealth Management LLC acquired a new position in shares of Hut 8 in the 3rd quarter valued at $25,000. Arlington Trust Co LLC boosted its position in shares of Hut 8 by 175.0% in 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. Parkside Financial Bank & Trust grew its stake in shares of Hut 8 by 258.5% during the second quarter. Parkside Financial Bank & Trust now owns 380 shares of the company's stock worth $44,000 after purchasing an additional 274 shares during the period. Harbor Investment Advisory LLC acquired a new stake in shares of Hut 8 during the first quarter worth $47,000. Finally, CoreCap Advisors LLC grew its stake in shares of Hut 8 by 42.1% during 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. Institutional investors and hedge funds own 31.75% of the company's stock.

Hut 8 Company Profile

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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