California State Teachers Retirement System Boosts Stake in Hut 8 Corp. $HUT

Key Points

• California State Teachers Retirement System increased its Hut 8 stake by 11,436.2% in the second quarter, owning 13.26 million shares worth approximately $1.53 billion, or 10.75% of the company.
• Hut 8 reported a quarterly loss of $1.27 per share, missing analyst expectations by $0.72, while revenue of $74.93 million also fell short of estimates.
• Despite the earnings miss, analysts maintain a consensus “Buy” rating with an average price target of $144.89; targets were raised by B. Riley and Piper Sandler, although Weiss Ratings downgraded the stock to “Sell.”

California State Teachers Retirement System increased its stake in Hut 8 Corp. (NASDAQ:HUT - Free Report) by 11,436.2% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 13,256,088 shares of the company's stock after purchasing an additional 13,141,179 shares during the period. California State Teachers Retirement System owned approximately 10.75% of Hut 8 worth $1,530,349,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Hut 8 during the 2nd quarter valued at $1,093,294,000. Northwestern Mutual Wealth Management Co. grew its position in shares of 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 last quarter. Ameriprise Financial Inc. grew its position in shares of Hut 8 by 20.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 2,991,466 shares of the company's stock worth $104,133,000 after buying an additional 504,652 shares during the last quarter. SRS Investment Management LLC purchased a new position in shares of Hut 8 during the fourth quarter valued at approximately $131,838,000. Finally, Sachem Head Capital Management LP purchased a new position in shares of Hut 8 during the fourth quarter valued at approximately $129,780,000. 31.75% of the stock is currently owned by institutional investors.

Insider Activity at Hut 8

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 transaction of $507,608.20. Following the completion of the sale, the chief financial officer 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Victor Semah sold 10,000 shares of Hut 8 stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total transaction of $1,250,000.00. Following the completion of the transaction, the insider directly owned 31,378 shares in the company, valued at approximately $3,922,250. The trade was a 24.17% decrease in their position. The SEC filing for this sale provides additional information. 10.40% of the stock is currently owned by corporate insiders.

Hut 8 Stock Performance

NASDAQ HUT opened at $98.60 on Friday. The company has a quick ratio of 19.35, a current ratio of 19.35 and a debt-to-equity ratio of 4.22. Hut 8 Corp. has a twelve month low of $31.67 and a twelve month high of $140.80. The business has a 50-day moving average price of $94.17 and a 200-day moving average price of $87.53. The firm has a market cap of $12.15 billion, a price-to-earnings ratio of -18.09 and a beta of 4.51.

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). The business had revenue of $74.93 million for 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 in the prior year, the company posted $1.18 earnings per share. As a group, equities research analysts predict that Hut 8 Corp. will post -2.85 EPS for the current fiscal year.

Analysts Set New Price Targets

HUT has been the subject of a number of research analyst reports. Rosenblatt Securities reaffirmed a "buy" rating and issued a $124.00 price target on shares of Hut 8 in a research note on Wednesday, August 5th. Weiss Ratings downgraded shares of Hut 8 from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, August 19th. B. Riley Financial upped their price objective on shares of Hut 8 from $130.00 to $163.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. Freedom Broker raised shares of Hut 8 to a "strong-buy" rating in a research report on Tuesday, August 18th. Finally, Piper Sandler lifted their target price on shares of Hut 8 from $127.00 to $143.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus price target of $144.89.

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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