Hut 8 (NASDAQ:HUT) Rating Lowered to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Hut 8 to “strong sell”, contrasting with a broader analyst consensus of “Moderate Buy” based on 18 Buy ratings and one Sell rating. The average analyst price target is $137.20.
• Hut 8 reported a significant quarterly loss, posting ($1.98) in EPS versus consensus of ($0.33), despite revenue of $139.31 million exceeding expectations of $78.53 million.
• The stock opened at $107.63 and remains highly volatile, with a beta of 4.62 and a 12-month range of $18.68 to $140.80. Insiders sold 112,724 shares worth $12.18 million over the latest quarter.

Hut 8 (NASDAQ:HUT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued to clients and investors on Saturday.

Several other equities analysts also recently commented on the stock. Piper Sandler boosted their target price on shares of Hut 8 from $93.00 to $127.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings cut shares of Hut 8 from a "sell (d+)" rating to a "sell (d-)" rating in a research note on Thursday, May 7th. Benchmark raised their target price on shares of Hut 8 from $165.00 to $195.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. B. Riley Financial lifted their price target on shares of Hut 8 from $76.00 to $130.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $124.00 price target on shares of Hut 8 in a research note on Tuesday, July 21st. Eighteen research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $137.20.

Hut 8 Stock Performance

NASDAQ:HUT opened at $107.63 on Friday. The stock has a 50-day moving average price of $111.84 and a 200 day moving average price of $80.83. The stock has a market capitalization of $12.12 billion, a P/E ratio of -35.88 and a beta of 4.62. Hut 8 has a 12-month low of $18.68 and a 12-month high of $140.80. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.12.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($1.98) EPS for the quarter, missing analysts' consensus estimates of ($0.33) by ($1.65). Hut 8 had a negative return on equity of 0.35% and a negative net margin of 109.77%.The business had revenue of $139.31 million during the quarter, compared to analysts' expectations of $78.53 million. Equities research analysts forecast that Hut 8 will post -2.52 EPS for the current fiscal year.

Insider Transactions at Hut 8

In related news, Director Amy Marie Wilkinson sold 20,000 shares of the firm's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $100.78, for a total value of $2,015,600.00. Following the completion of the transaction, the director directly owned 262,136 shares of the company's stock, valued at approximately $26,418,066.08. This trade represents a 7.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Victor Semah sold 10,518 shares of the business's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $76.83, for a total transaction of $808,097.94. Following the completion of the sale, the insider owned 41,378 shares in the company, valued at $3,179,071.74. This represents a 20.27% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 112,724 shares of company stock valued at $12,184,340 over the last quarter. 10.40% of the stock is owned by insiders.

Institutional Trading of Hut 8

A number of large investors have recently made changes to their positions in HUT. Arlington Trust Co LLC raised its position in shares of Hut 8 by 175.0% during the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock valued at $32,000 after buying an additional 175 shares in the last quarter. Imprint Wealth LLC purchased a new position in Hut 8 in the fourth quarter worth about $38,000. Russell Investments Group Ltd. increased its stake in Hut 8 by 235.8% during the second quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company's stock worth $46,000 after acquiring an additional 1,719 shares during the last quarter. Harbor Investment Advisory LLC bought a new stake in Hut 8 during the first quarter worth approximately $47,000. Finally, Activest Wealth Management bought a new stake in Hut 8 during the fourth quarter worth approximately $49,000. 31.75% of the stock is currently owned by institutional investors.

About Hut 8

Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high‐performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose‐built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low‐cost, low‐carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.

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