Hut 8 (NASDAQ:HUT) Shares Gap Down - What's Next?

Key Points

• Hut 8 Corp.'s shares gapped down to $46.45 on Tuesday, down from a previous close of $49.11, with a trading volume of over 1.6 million shares.
• Analysts have raised price targets for Hut 8 significantly, with BTIG Research increasing theirs from $33.00 to $55.00 and a consensus price target of $31.18 among analysts.
• Insider trading activity showed a decrease in ownership after CFO Sean Glennan sold 6,060 shares, and Director Joseph Flinn sold 8,500 shares, indicating potential concerns among insiders.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $49.11, but opened at $46.45. Hut 8 shares last traded at $46.58, with a volume of 1,602,838 shares changing hands.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on HUT shares. BTIG Research upped their price target on Hut 8 from $33.00 to $55.00 and gave the company a "buy" rating in a research report on Tuesday. Weiss Ratings restated a "hold (c-)" rating on shares of Hut 8 in a research report on Wednesday, October 8th. Canaccord Genuity Group upped their price target on Hut 8 from $32.00 to $36.00 and gave the company a "buy" rating in a research report on Wednesday, August 20th. Northland Securities set a $26.00 price target on Hut 8 in a research report on Friday, July 11th. Finally, Maxim Group upped their price objective on Hut 8 from $23.00 to $30.00 and gave the company a "buy" rating in a report on Monday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $31.18.

Hut 8 Stock Performance

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 business has a 50 day simple moving average of $30.59 and a 200 day simple moving average of $21.42.

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

Insider Buying and Selling at Hut 8

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

Hedge Funds Weigh In On Hut 8

Several hedge funds have recently made changes to their positions in the company. Advisors Asset Management Inc. grew its holdings in shares of Hut 8 by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 1,613 shares of the company's stock worth $30,000 after purchasing an additional 655 shares during the last quarter. Main Management ETF Advisors LLC grew its holdings in shares of Hut 8 by 1.7% during the second quarter. Main Management ETF Advisors LLC now owns 44,713 shares of the company's stock worth $832,000 after purchasing an additional 732 shares during the last quarter. Intech Investment Management LLC grew its holdings in shares of Hut 8 by 1.1% during the second quarter. Intech Investment Management LLC now owns 66,957 shares of the company's stock worth $1,245,000 after purchasing an additional 734 shares during the last quarter. Nisa Investment Advisors LLC grew its holdings in shares of Hut 8 by 116.4% during the second quarter. Nisa Investment Advisors LLC now owns 1,515 shares of the company's stock worth $28,000 after purchasing an additional 815 shares during the last quarter. Finally, Victory Capital Management Inc. grew its holdings in shares of Hut 8 by 7.9% during the first quarter. Victory Capital Management Inc. now owns 11,127 shares of the company's stock worth $129,000 after purchasing an additional 819 shares during the last quarter. Hedge funds and other institutional investors own 31.75% of the company's stock.

About Hut 8

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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