Hut 8 (NASDAQ:HUT) Sets New 1-Year High - Should You Buy?

Key Points

• Securities of Hut 8 Corp. reached a new 52-week high of $52.40 during trading, with a closing price of $49.94.
• Analysts have largely positive outlooks on Hut 8, with multiple firms raising their price targets and 16 analysts issuing a Buy rating for the stock.
• Insider trading activity revealed significant share sales, with notable decreases in ownership by both the Director and CFO, indicating potential concerns among executives.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) hit a new 52-week high during trading on Wednesday . The stock traded as high as $52.40 and last traded at $49.94, with a volume of 11673378 shares. The stock had previously closed at $49.11.

Analysts Set New Price Targets

A number of research firms have issued reports on HUT. Canaccord Genuity Group increased their target price on shares of Hut 8 from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Wednesday, August 20th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Hut 8 in a report on Wednesday, October 8th. Roth Capital restated a "buy" rating and issued a $60.00 price objective (up from $31.00) on shares of Hut 8 in a report on Monday, September 15th. BTIG Research raised their price objective on shares of Hut 8 from $33.00 to $55.00 and gave the company a "buy" rating in a report on Tuesday. Finally, Maxim Group increased their target price on shares of Hut 8 from $23.00 to $30.00 and gave the company a "buy" rating in a research report on Monday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Hut 8 has an average rating of "Buy" and an average target price of $31.18.

Hut 8 Trading Up 1.7%

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.81 and a current ratio of 1.81. The company's 50-day simple moving average is $31.18 and its 200-day simple moving average is $21.62.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.14) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.15) by $0.01. Hut 8 had a net margin of 112.81% and a return on equity of 8.73%. The company had revenue of $41.72 million for the quarter, compared to the consensus estimate of $49.10 million. On average, research analysts forecast that Hut 8 Corp. will post -0.53 EPS for the current year.

Insider Buying and Selling at Hut 8

In other Hut 8 news, Director Joseph Flinn sold 8,500 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $26.55, for a total transaction of $225,675.00. Following the transaction, the director directly owned 9,791 shares of the company's stock, valued at approximately $259,951.05. This trade represents a 46.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Sean Joseph Glennan sold 6,060 shares of the firm's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $22.09, for a total transaction of $133,865.40. Following the completion of the sale, the chief financial officer owned 6,295 shares of the company's stock, valued at $139,056.55. This trade represents a 49.05% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 16,060 shares of company stock worth $399,485 over the last three months. 11.20% of the stock is currently owned by insiders.

Institutional Trading of Hut 8

Hedge funds have recently made changes to their positions in the company. Tactive Advisors LLC lifted its stake in shares of Hut 8 by 42.6% in the third quarter. Tactive Advisors LLC now owns 93,958 shares of the company's stock valued at $3,271,000 after purchasing an additional 28,082 shares during the period. Voya Investment Management LLC lifted its stake in shares of Hut 8 by 356.5% in the third quarter. Voya Investment Management LLC now owns 116,956 shares of the company's stock valued at $4,071,000 after purchasing an additional 91,335 shares during the period. Guided Capital Wealth Management LLC acquired a new stake in shares of Hut 8 in the third quarter valued at about $244,000. Vident Advisory LLC lifted its stake in shares of Hut 8 by 1.5% in the second quarter. Vident Advisory LLC now owns 501,053 shares of the company's stock valued at $9,319,000 after purchasing an additional 7,564 shares during the period. Finally, Moore Capital Management LP acquired a new stake in shares of Hut 8 in the second quarter valued at about $9,159,000. Institutional investors and hedge funds own 31.75% of the company's stock.

Hut 8 Company Profile

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other.

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