Hut 8 (NASDAQ:HUT) Shares Gap Down - Here's Why

Key Points

• Shares gapped down at the open (prior close $41.73, opened $39.17) and were trading around $40.43 on heavy volume, with the stock noted as down about 8% intraday.
• Analysts have been raising targets and ratings—Canaccord to $54, JMP to $65 and Northland $58—and the consensus across analysts is a "Buy" with a consensus price target of $47.75.
• Hut 8 beat quarterly estimates, reporting ($0.07) EPS vs. ($0.16) expected and $84.36M revenue vs. $64.7M expected, while insiders sold 16,060 shares recently and now own 11.20% of the company.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s share price gapped down before the market opened on Thursday . The stock had previously closed at $41.73, but opened at $39.17. Hut 8 shares last traded at $40.4290, with a volume of 1,593,404 shares traded.

Analyst Ratings Changes

HUT has been the subject of a number of recent research reports. Canaccord Genuity Group boosted their price objective on shares of Hut 8 from $36.00 to $54.00 and gave the company a "buy" rating in a research report on Wednesday, November 5th. Citigroup restated an "outperform" rating on shares of Hut 8 in a research report on Tuesday, October 21st. Weiss Ratings reissued a "hold (c)" rating on shares of Hut 8 in a report on Friday, October 31st. Northland Securities set a $58.00 price target on Hut 8 in a research note on Wednesday, November 5th. Finally, JMP Securities boosted their price objective on Hut 8 from $25.00 to $65.00 and gave the company a "market outperform" rating in a research report on Tuesday, October 21st. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $47.75.

Hut 8 Stock Down 8.0%

The business has a 50-day moving average of $41.20 and a 200 day moving average of $26.91. The company has a market capitalization of $4.15 billion, a PE ratio of -71.18 and a beta of 4.40. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.72 and a quick ratio of 0.72.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its earnings results on Tuesday, November 4th. The company reported ($0.07) earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.09. The firm had revenue of $84.36 million during the quarter, compared to analyst estimates of $64.70 million. Hut 8 had a net margin of 115.39% and a return on equity of 8.06%. Equities research analysts predict that Hut 8 Corp. will post -0.53 earnings per share for the current year.

Insider Activity

In related news, Director Joseph Flinn sold 8,500 shares of the firm's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $26.55, for a total value of $225,675.00. Following the transaction, the director owned 9,791 shares of the company's stock, valued at $259,951.05. This trade represents a 46.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Sean Joseph Glennan sold 6,060 shares of the business's stock in a transaction dated Monday, August 25th. The shares were 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 directly owned 6,295 shares of the company's stock, valued at approximately $139,056.55. This trade represents a 49.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 16,060 shares of company stock worth $399,485 over the last 90 days. Corporate insiders own 11.20% of the company's stock.

Hedge Funds Weigh In On Hut 8

Several institutional investors have recently made changes to their positions in HUT. Nisa Investment Advisors LLC increased its holdings in Hut 8 by 116.4% during the second quarter. Nisa Investment Advisors LLC now owns 1,515 shares of the company's stock valued at $28,000 after buying an additional 815 shares during the period. Advisors Asset Management Inc. boosted its holdings in shares of Hut 8 by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 1,613 shares of the company's stock valued at $30,000 after buying an additional 655 shares in the last quarter. State of Wyoming purchased a new position in Hut 8 during the 1st quarter worth $32,000. US Bancorp DE increased its holdings in shares of Hut 8 by 3,961.7% during the first quarter. US Bancorp DE now owns 3,290 shares of the company's stock valued at $38,000 after acquiring an additional 3,209 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its position in shares of Hut 8 by 235.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company's stock valued at $46,000 after purchasing an additional 1,719 shares during the last quarter. Hedge funds and other institutional investors 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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