Hut 8 (NASDAQ:HUT) Shares Gap Up - Still a Buy?

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $18.48, but opened at $19.27. Hut 8 shares last traded at $21.42, with a volume of 5,707,567 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on HUT. HC Wainwright reaffirmed a "buy" rating and issued a $25.00 target price on shares of Hut 8 in a research note on Friday, May 9th. Benchmark reduced their price target on Hut 8 from $41.00 to $33.00 and set a "buy" rating on the stock in a research note on Wednesday, April 2nd. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $32.00 price objective on shares of Hut 8 in a research report on Monday, May 12th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $30.00 target price on shares of Hut 8 in a research note on Friday, March 7th. Finally, Maxim Group began coverage on Hut 8 in a research note on Thursday, May 1st. They issued a "buy" rating and a $20.00 price target on the stock. Fifteen analysts have rated the stock with a buy rating and four have given a strong buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $25.76.

Hut 8 Price Performance

The company has a debt-to-equity ratio of 0.27, a current ratio of 1.26 and a quick ratio of 1.26. The firm has a fifty day moving average of $16.00 and a 200-day moving average of $17.37.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.06). The company had revenue of $20.88 million during the quarter, compared to analysts' expectations of $33.68 million. Hut 8 had a positive return on equity of 13.00% and a negative net margin of 39.92%. On average, analysts forecast that Hut 8 Corp. will post -0.53 earnings per share for the current year.

Insider Activity at Hut 8

In related news, Director Joseph Flinn sold 11,069 shares of the firm's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $15.77, for a total transaction of $174,558.13. Following the completion of the sale, the director directly owned 19,791 shares of the company's stock, valued at approximately $312,104.07. This trade represents a 35.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Victor Semah sold 11,363 shares of the business's stock in a transaction on Monday, May 5th. The stock was sold at an average price of $12.95, for a total transaction of $147,150.85. Following the completion of the transaction, the insider owned 15,738 shares in the company, valued at $203,807.10. This represents a 41.93% decrease in their position. The disclosure for this sale can be found here. 11.20% of the stock is owned by company insiders.

Institutional Trading of Hut 8

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in Hut 8 by 3.9% in the fourth quarter. Vanguard Group Inc. now owns 6,459,385 shares of the company's stock valued at $132,352,000 after purchasing an additional 245,113 shares during the last quarter. Northern Trust Corp boosted its stake in shares of Hut 8 by 4.1% during the 4th quarter. Northern Trust Corp now owns 717,575 shares of the company's stock valued at $14,703,000 after buying an additional 28,462 shares during the last quarter. ExodusPoint Capital Management LP purchased a new position in shares of Hut 8 during the 4th quarter valued at approximately $1,180,000. Jericho Capital Asset Management L.P. acquired a new stake in shares of Hut 8 during the fourth quarter worth approximately $37,400,000. Finally, JPMorgan Chase & Co. increased its stake in shares of Hut 8 by 23.1% in the fourth quarter. JPMorgan Chase & Co. now owns 322,927 shares of the company's stock worth $6,617,000 after buying an additional 60,542 shares during the last quarter. 31.75% of the stock is currently owned by institutional investors and hedge funds.

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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