Hut 8 (NASDAQ:HUT) Shares Gap Down After Earnings Miss

Key Points

• Hut 8 shares fell 8.5% after the company reported quarterly EPS of negative $1.27, missing the $0.55 loss analysts expected, while revenue of $72.66 million also came in below the $79.37 million consensus.
• The company posted a negative net margin of 109.77%, compared with EPS of $1.18 in the same quarter a year earlier, highlighting a sharp year-over-year deterioration.
• Despite the earnings miss, analyst sentiment remains positive: 18 analysts rate the stock Buy versus one Sell, with a consensus Moderate Buy rating and a $138.85 price target.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $112.08, but opened at $103.51. Hut 8 shares last traded at $103.0050, with a volume of 1,316,089 shares.

The company reported ($1.27) EPS for the quarter, missing analysts' consensus estimates of ($0.55) by ($0.72). The firm had revenue of $72.66 million for the quarter, compared to analyst estimates of $79.37 million. Hut 8 had a negative net margin of 109.77% and a negative return on equity of 0.35%. During the same period in the previous year, the company earned $1.18 EPS.

Wall Street Analyst Weigh In

HUT has been the topic of a number of research reports. Keefe, Bruyette & Woods raised their price objective on Hut 8 from $138.00 to $157.00 and gave the company an "outperform" rating in a report on Tuesday, July 28th. Northland Securities set a $120.00 target price on shares of Hut 8 in a report on Thursday, May 7th. Jefferies Financial Group started coverage on shares of Hut 8 in a research report on Thursday, May 14th. They issued a "buy" rating and a $156.00 target price for the company. Citigroup reissued an "outperform" rating on shares of Hut 8 in a research note on Tuesday, April 28th. Finally, Loop Capital set a $226.00 price target on shares of Hut 8 in a research report on Monday, June 22nd. Eighteen research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Hut 8 currently has a consensus rating of "Moderate Buy" and a consensus price target of $138.85.

Insider Buying and Selling

In related news, Director Joseph Flinn sold 30,500 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $116.21, for a total value of $3,544,405.00. Following the completion of the sale, the director owned 18,238 shares of the company's stock, valued at approximately $2,119,437.98. This represents a 62.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 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 the firm's stock in a transaction dated 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 sale, the insider owned 31,378 shares of the company's stock, valued at approximately $3,922,250. The trade was a 24.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 102,206 shares of company stock worth $11,376,242 in the last quarter. 10.40% of the stock is currently owned by insiders.

Institutional Trading of Hut 8

Several hedge funds have recently made changes to their positions in HUT. Arlington Trust Co LLC lifted its holdings in Hut 8 by 175.0% in the second quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock valued at $32,000 after acquiring an additional 175 shares during the last quarter. Imprint Wealth LLC acquired a new stake in Hut 8 during the fourth quarter worth $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 purchased a new stake in Hut 8 in the first quarter valued at $47,000. Finally, Activest Wealth Management purchased a new position in shares of Hut 8 during the 4th quarter worth $49,000. Hedge funds and other institutional investors own 31.75% of the company's stock.

Hut 8 Stock Down 8.5%

The business has a 50-day moving average of $111.97 and a 200-day moving average of $81.33. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.86 and a current ratio of 0.86. The stock has a market capitalization of $11.54 billion, a price-to-earnings ratio of -34.16 and a beta of 4.64.

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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