Hut 8 (NASDAQ:HUT) Stock Price Down 9.7% Following Weak Earnings

Key Points

• Hut 8 shares fell 9.7% to about $101.16 after the company reported a quarterly loss of $1.27 per share, significantly worse than analysts’ expected loss of $0.55, while revenue of $72.66 million also missed the $79.37 million forecast.
• Despite the earnings miss, analyst sentiment remains broadly positive: 18 analysts rate the stock a Buy and one rates it a Sell, producing a consensus “Moderate Buy” rating and an average price target of $138.85.
• Insiders have been selling shares: company directors sold stock in recent transactions, and insiders have sold 102,206 shares worth approximately $11.4 million over the past 90 days.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s stock price fell 9.7% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $100.85 and last traded at $101.16. Approximately 6,930,452 shares changed hands during mid-day trading, an increase of 44% from the average session volume of 4,822,560 shares. The stock had previously closed at $112.08.

The company reported ($1.27) earnings per share for the quarter, missing analysts' consensus estimates of ($0.55) by ($0.72). The company had revenue of $72.66 million for the quarter, compared to analysts' expectations 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 quarter in the prior year, the firm posted $1.18 earnings per share.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. B. Riley Financial upped their target price on shares of Hut 8 from $130.00 to $163.00 and gave the stock a "buy" rating in a report on Monday. Piper Sandler boosted their price objective on Hut 8 from $93.00 to $127.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Cantor Fitzgerald upped their price objective on Hut 8 from $68.00 to $80.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. Wall Street Zen downgraded shares of Hut 8 from a "sell" rating to a "strong sell" rating in a report on Saturday. Finally, Canaccord Genuity Group raised their price objective on Hut 8 from $70.00 to $130.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Eighteen equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $138.85.

Insider Buying and Selling at Hut 8

In related news, Director Rick Rickertsen sold 17,491 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $110.00, for a total transaction of $1,924,010.00. Following the completion of the transaction, the director owned 17,491 shares in the company, valued at $1,924,010. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Amy Marie Wilkinson sold 20,000 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $100.78, for a total transaction of $2,015,600.00. Following the sale, the director directly owned 262,136 shares of the company's stock, valued at $26,418,066.08. This represents a 7.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 102,206 shares of company stock valued at $11,376,242. Corporate insiders own 10.40% of the company's stock.

Institutional Investors Weigh In On Hut 8

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in Hut 8 by 3.2% in the 4th quarter. Vanguard Group Inc. now owns 7,978,357 shares of the company's stock worth $366,526,000 after acquiring an additional 250,320 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Hut 8 by 4,669,387.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 4,062,454 shares of the company's stock valued at $186,629,000 after purchasing an additional 4,062,367 shares during the period. Ameriprise Financial Inc. grew its stake in Hut 8 by 20.3% in the third quarter. Ameriprise Financial Inc. now owns 2,991,466 shares of the company's stock worth $104,133,000 after purchasing an additional 504,652 shares in the last quarter. SRS Investment Management LLC bought a new position in Hut 8 in the fourth quarter worth approximately $131,838,000. Finally, Sachem Head Capital Management LP purchased a new position in shares of Hut 8 during the fourth quarter valued at $129,780,000. Institutional investors own 31.75% of the company's stock.

Hut 8 Stock Performance

The firm has a market cap of $11.39 billion, a P/E ratio of -33.72 and a beta of 4.64. 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 firm's fifty day moving average price is $111.97 and its 200 day moving average price is $81.33.

Hut 8 Company Profile

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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