Hut 8 (NASDAQ:HUT) Trading Down 6.4% - Should You Sell?

Key Points

• Hut 8's stock dropped 6.4% during trading, closing at $35.43, with a significant decrease in trading volume, down 25% from its daily average.
• Several analysts boosted their price targets for Hut 8, with Roth Capital raising theirs from $31.00 to $60.00, while the current consensus rating remains a "Buy" with a target price of $29.88.
• In recent insider transactions, Hut 8's CFO sold over 6,000 shares, representing a 49% decrease in ownership, signaling potential concerns about the company's stock performance.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s stock price was down 6.4% during trading on Tuesday . The stock traded as low as $35.66 and last traded at $35.43. Approximately 4,292,126 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 5,712,774 shares. The stock had previously closed at $37.87.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on HUT shares. Canaccord Genuity Group boosted their price target on shares of Hut 8 from $32.00 to $36.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Northland Securities set a $26.00 price target on shares of Hut 8 in a report on Friday, July 11th. Rosenblatt Securities cut their price objective on shares of Hut 8 from $24.00 to $23.00 and set a "buy" rating on the stock in a research report on Monday, August 11th. Maxim Group lifted their price objective on shares of Hut 8 from $23.00 to $30.00 and gave the stock a "buy" rating in a research report on Monday, August 11th. Finally, Roth Capital reissued a "buy" rating and set a $60.00 target price (up previously from $31.00) on shares of Hut 8 in a research report on Monday, September 15th. Three investment analysts have rated the stock with a Strong Buy rating and sixteen have issued a Buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $29.88.

Hut 8 Stock Down 6.5%

The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.19. The stock's 50-day simple moving average is $25.03 and its two-hundred day simple moving average is $18.59.

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

Insider Transactions at Hut 8

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

Institutional Trading of Hut 8

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Teacher Retirement System of Texas acquired a new stake in Hut 8 during the first quarter worth approximately $143,000. Baird Financial Group Inc. purchased a new position in Hut 8 in the 1st quarter valued at $360,000. Bank of America Corp DE grew its position in Hut 8 by 16.8% in the 4th quarter. Bank of America Corp DE now owns 146,500 shares of the company's stock valued at $3,002,000 after buying an additional 21,058 shares during the last quarter. Nuveen LLC purchased a new stake in shares of Hut 8 during the 1st quarter worth $2,508,000. Finally, SG Americas Securities LLC boosted its position in shares of Hut 8 by 481.9% during the 1st quarter. SG Americas Securities LLC now owns 40,615 shares of the company's stock worth $472,000 after purchasing an additional 33,635 shares in the last quarter. Institutional investors and hedge funds 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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