Hut 8 Corp. (NASDAQ:HUT) Receives Consensus Rating of "Buy" from Brokerages

Key Points

• Hut 8 has a consensus “Buy” rating from 24 analysts, with 19 buys, three strong buys, one hold and one sell. The average 12-month price target is $145.23.
• Recent analyst actions were generally positive, including price-target increases from Piper Sandler to $143 and B. Riley to $163, while Morgan Stanley initiated coverage with a $263 target and an overweight rating.
• Despite institutional buying—including a new $1.09 billion BlackRock stake—Hut 8 shares opened at $79.59, below their 50- and 200-day averages, after the company reported a quarterly loss and revenue below expectations.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) has received a consensus rating of "Buy" from the twenty-four brokerages that are presently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, nineteen have given a buy rating and three have given a strong buy rating to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $145.23.

Several research analysts recently issued reports on the stock. Wall Street Zen lowered shares of Hut 8 from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Piper Sandler raised their price target on Hut 8 from $127.00 to $143.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Morgan Stanley assumed coverage on Hut 8 in a research report on Thursday, July 23rd. They set an "overweight" rating and a $263.00 price target on the stock. Roth Capital reiterated a "buy" rating and issued a $108.00 price objective on shares of Hut 8 in a report on Wednesday. Finally, B. Riley Financial increased their price objective on Hut 8 from $130.00 to $163.00 and gave the company a "buy" rating in a research report on Monday, August 3rd.

Insider Buying and Selling

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of Hut 8 stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $78.76, for a total transaction of $507,608.20. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through 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 business's stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the director owned 89,408 shares of the company's stock, valued at approximately $8,940,800. The trade was a 18.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Hut 8

Several institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in Hut 8 in the second quarter worth $1,093,294,000. Sachem Head Capital Management LP bought a new position in shares of Hut 8 during the fourth quarter valued at about $129,780,000. Oasis Management Co Ltd. grew its stake in shares of 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 buying an additional 1,611,653 shares during the last quarter. Avala Global LP purchased a new position in shares of Hut 8 in the second quarter worth about $144,602,000. Finally, Wellington Management Group LLP purchased a new position in shares of Hut 8 in the second quarter worth about $97,949,000. Institutional investors own 31.75% of the company's stock.

Hut 8 Stock Down 10.9%

HUT stock opened at $79.59 on Friday. The company's 50 day moving average is $90.54 and its 200 day moving average is $93.37. The stock has a market cap of $9.81 billion, a price-to-earnings ratio of -14.60 and a beta of 4.62. 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 1-year low of $31.67 and a 1-year high of $140.80.

Hut 8 (NASDAQ:HUT - Get Free Report) last announced 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). Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. The company had revenue of $74.93 million for the quarter, compared to the consensus estimate of $79.37 million. During the same quarter in the previous year, the firm earned $1.18 earnings per share. Sell-side analysts predict that Hut 8 will post -2.98 EPS for the current fiscal year.

Hut 8 Company Profile

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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