Hut 8 (NASDAQ:HUT) Shares Down 7.7% - Time to Sell?

Key Points

• Hut 8 Corp. shares fell by 7.7% during trading, with prices decreasing from $46.92 to $43.31, amid a significant drop in trading volume.
• Analysts set a mixed range of price targets for Hut 8, with Piper Sandler marking a target of $74.00 and BTIG Research raising their target from $33.00 to $55.00, while the average price target is approximately $38.41.
• Insider activity revealed significant selling, with CFO Sean Joseph Glennan reducing his stake by 49% and total insider sales in the last 90 days amounting to 16,060 shares valued at $399,485.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) was down 7.7% during trading on Wednesday . The stock traded as low as $44.30 and last traded at $43.31. Approximately 1,229,352 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 5,874,921 shares. The stock had previously closed at $46.92.

Analysts Set New Price Targets

Several analysts recently commented on HUT shares. Piper Sandler set a $74.00 price objective on shares of Hut 8 and gave the company an "overweight" rating in a research note on Monday. B. Riley restated a "buy" rating on shares of Hut 8 in a research report on Wednesday. BTIG Research lifted their target price on shares of Hut 8 from $33.00 to $55.00 and gave the stock a "buy" rating in a research report on Tuesday, October 14th. Weiss Ratings restated a "hold (c-)" rating on shares of Hut 8 in a research report on Wednesday, October 8th. Finally, Roth Capital restated a "buy" rating and set a $60.00 target price (up previously from $31.00) on shares of Hut 8 in a research report on Monday, September 15th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Hut 8 presently has an average rating of "Buy" and an average price target of $38.41.

Hut 8 Stock Down 22.0%

The business's 50-day moving average price is $34.09 and its two-hundred day moving average price is $22.91. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.81 and a quick ratio of 1.81.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.14) earnings per share for the quarter, beating analysts' consensus estimates of ($0.15) by $0.01. The business had revenue of $41.72 million during the quarter, compared to analyst estimates of $49.10 million. Hut 8 had a net margin of 112.81% and a return on equity of 8.73%. Research analysts anticipate that Hut 8 Corp. will post -0.53 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Sean Joseph Glennan sold 6,060 shares of the business's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $22.09, for a total value of $133,865.40. Following the completion of the sale, the chief financial officer directly owned 6,295 shares in the company, valued at approximately $139,056.55. The trade was a 49.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph Flinn sold 8,500 shares of the business's stock in a transaction that occurred 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 completion of the sale, the director owned 9,791 shares of the company's stock, valued at approximately $259,951.05. The trade was a 46.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 16,060 shares of company stock valued at $399,485. 11.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Hut 8

Several institutional investors have recently bought and sold shares of the business. Global Retirement Partners LLC grew its stake in Hut 8 by 152.2% during the third quarter. Global Retirement Partners LLC now owns 3,349 shares of the company's stock worth $117,000 after buying an additional 2,021 shares during the period. Savior LLC purchased a new stake in Hut 8 during the third quarter worth approximately $296,000. Paradiem LLC purchased a new stake in Hut 8 during the third quarter worth approximately $1,652,000. Vontobel Holding Ltd. purchased a new stake in Hut 8 during the third quarter worth approximately $279,000. Finally, Plancorp LLC purchased a new stake in Hut 8 during the third quarter worth approximately $209,000. 31.75% of the stock is currently owned by hedge funds and other institutional investors.

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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