Hut 8 Corp. (NASDAQ:HUT) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analysts maintain a bullish outlook: Twenty-one firms give Hut 8 a consensus “Buy” rating, with 17 buys and three strong buys. The average 12-month price target is approximately $144.89, versus a recent share price of $98.60.
• Quarterly results fell short of expectations: Hut 8 reported a loss of $1.27 per share, missing the $0.55 loss estimate, while revenue of $74.93 million came in below the $79.37 million consensus. Analysts expect a full-year loss of $2.85 per share.
• Ownership activity was mixed: Company insiders sold shares, reducing their holdings, while institutional investors—including BlackRock and California State Teachers’ Retirement System—substantially increased or initiated positions. Institutions collectively own 31.75% of the stock.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) have received a consensus recommendation of "Buy" from the twenty-one research firms that are covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, seventeen have given a buy recommendation and three have given a strong buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $144.8947.

HUT has been the topic of a number of analyst reports. Wall Street Zen downgraded shares of Hut 8 from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Needham & Company LLC decreased their target price on shares of Hut 8 from $145.00 to $138.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Maxim Group upgraded shares of Hut 8 to a "strong-buy" rating in a research note on Wednesday, August 5th. Piper Sandler lifted their price target on shares of Hut 8 from $127.00 to $143.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, Compass Point set a $195.00 price target on shares of Hut 8 in a report on Wednesday, July 22nd.

Hut 8 Stock Performance

Shares of NASDAQ HUT opened at $98.60 on Monday. 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 stock has a market capitalization of $12.15 billion, a P/E ratio of -18.09 and a beta of 4.51. Hut 8 has a 1-year low of $31.67 and a 1-year high of $140.80. The business has a fifty day moving average price of $94.17 and a 200 day moving average price of $87.77.

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 the consensus estimate of ($0.55) by ($0.72). The company had revenue of $74.93 million during the quarter, compared to analysts' expectations 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 quarter last year, the firm earned $1.18 EPS. Equities research analysts expect that Hut 8 will post -2.85 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Victor Semah sold 10,000 shares of the firm's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total value of $1,250,000.00. Following the completion of the sale, the insider owned 31,378 shares of the company's stock, valued at $3,922,250. This trade represents a 24.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Sean Glennan sold 6,445 shares of the business'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 transaction, the chief financial officer owned 17,978 shares in the company, valued at approximately $1,415,947.28. This trade represents a 26.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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.

Institutional Investors Weigh In On Hut 8

Large investors have recently modified their holdings of the business. California State Teachers Retirement System raised its position in shares of Hut 8 by 11,436.2% in the 2nd quarter. California State Teachers Retirement System now owns 13,256,088 shares of the company's stock valued at $1,530,349,000 after purchasing an additional 13,141,179 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Hut 8 in the second quarter valued at about $1,093,294,000. Northwestern Mutual Wealth Management Co. increased its holdings in Hut 8 by 4,669,387.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 4,062,454 shares of the company's stock worth $186,629,000 after buying an additional 4,062,367 shares during the period. SRS Investment Management LLC acquired a new stake in shares of Hut 8 in the fourth quarter worth $131,838,000. Finally, Sachem Head Capital Management LP acquired a new stake in Hut 8 during the 4th quarter worth about $129,780,000. 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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