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

Key Points

• Hut 8 Corp. shares gapped up from a closing price of $46.36 to $49.13 before the market opened, with a last traded price of $49.83 and a trading volume of 2,403,576 shares.
• Equities research analysts are optimistic about Hut 8, with a consensus rating of "Buy" and a target price range from $23.00 to $60.00, indicating strong potential for growth.
• Insider trading activity shows significant share sales by company executives, with 16,060 shares sold over the last quarter, representing a notable decrease in their ownership stakes.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $46.36, but opened at $49.13. Hut 8 shares last traded at $49.83, with a volume of 2,403,576 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on HUT shares. 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 note on Monday, September 15th. Rosenblatt Securities dropped their target price on Hut 8 from $24.00 to $23.00 and set a "buy" rating on the stock in a report on Monday, August 11th. BTIG Research boosted their target price on Hut 8 from $25.00 to $33.00 and gave the company a "buy" rating in a report on Tuesday, September 9th. Canaccord Genuity Group boosted their target price on Hut 8 from $32.00 to $36.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Finally, Northland Securities set a $26.00 target price on Hut 8 in a report on Friday, July 11th. Three 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.com, Hut 8 has an average rating of "Buy" and a consensus target price of $29.88.

Hut 8 Trading Up 3.6%

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.81 and a quick ratio of 1.81. The company has a fifty day simple moving average of $29.55 and a two-hundred day simple moving average of $20.83.

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, beating the consensus estimate of ($0.15) by $0.01. Hut 8 had a return on equity of 8.73% and a net margin of 112.81%.The business had revenue of $41.72 million for the quarter, compared to the consensus estimate of $49.10 million. Equities analysts predict that Hut 8 Corp. will post -0.53 EPS for the current year.

Insider Activity

In related news, Director Joseph Flinn sold 8,500 shares of the stock in a transaction dated Thursday, August 28th. The stock was 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 in the company, valued at approximately $259,951.05. This represents a 46.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Sean Joseph Glennan sold 6,060 shares of the stock in a transaction dated 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 in the company, valued at $139,056.55. This trade represents a 49.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 16,060 shares of company stock worth $399,485 over the last quarter. 11.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hut 8

Hedge funds have recently modified their holdings of the stock. Nisa Investment Advisors LLC raised its holdings in shares of Hut 8 by 116.4% during the 2nd 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. raised its holdings in shares of Hut 8 by 68.4% during 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 during the period. Russell Investments Group Ltd. raised its holdings in shares of Hut 8 by 235.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company's stock valued at $46,000 after buying an additional 1,719 shares during the period. State of Wyoming purchased a new stake in shares of Hut 8 during the 1st quarter valued at about $32,000. Finally, US Bancorp DE raised its holdings in shares of Hut 8 by 3,961.7% during the 1st quarter. US Bancorp DE now owns 3,290 shares of the company's stock valued at $38,000 after buying an additional 3,209 shares during the period. 31.75% of the stock is currently owned by hedge funds and other institutional investors.

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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