Hut 8 (NASDAQ:HUT) Trading Down 7.3% - Here's What Happened

Key Points

• Hut 8 shares fell 7.3% to about $101.95, with trading volume roughly 80% below the average session volume.
• Analyst sentiment remains broadly positive: 18 analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $133.10.
• The company reported a quarterly loss of $1.98 per share, substantially worse than the expected $0.33 loss, despite revenue of $139.31 million exceeding estimates; insiders have also sold $12.18 million worth of shares over the past 90 days.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s share price fell 7.3% during trading on Monday . The stock traded as low as $102.73 and last traded at $101.9450. Approximately 954,290 shares traded hands during trading, a decline of 80% from the average session volume of 4,774,933 shares. The stock had previously closed at $109.99.

Analyst Upgrades and Downgrades

HUT has been the topic of a number of research reports. Cantor Fitzgerald raised their price objective on Hut 8 from $68.00 to $80.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. BTIG Research increased their price target on shares of Hut 8 from $115.00 to $150.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Weiss Ratings downgraded shares of Hut 8 from a "sell (d+)" rating to a "sell (d-)" rating in a research note on Thursday, May 7th. Canaccord Genuity Group boosted their price objective on shares of Hut 8 from $70.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Finally, Northland Securities set a $120.00 price objective on shares of Hut 8 in a research note on Thursday, May 7th. Eighteen investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Hut 8 currently has an average rating of "Moderate Buy" and a consensus price target of $133.10.

Hut 8 Stock Performance

The company has a market cap of $11.45 billion, a P/E ratio of -33.89 and a beta of 4.62. The business has a 50 day moving average price of $111.59 and a two-hundred day moving average price of $79.46. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.86 and a current ratio of 0.86.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($1.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.33) by ($1.65). Hut 8 had a negative return on equity of 0.35% and a negative net margin of 109.77%.The company had revenue of $139.31 million for the quarter, compared to the consensus estimate of $78.53 million. On average, sell-side analysts anticipate that Hut 8 Corp. will post -2.12 earnings per share for the current year.

Insider Activity

In other Hut 8 news, insider Victor Semah sold 10,518 shares of the firm's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $76.83, for a total value of $808,097.94. Following the sale, the insider owned 41,378 shares of the company's stock, valued at $3,179,071.74. This trade represents a 20.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Amy Marie Wilkinson sold 20,000 shares of the business's stock in a transaction dated 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 completion of the transaction, the director owned 262,136 shares in the company, valued at $26,418,066.08. The trade was a 7.09% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 112,724 shares of company stock worth $12,184,340 over the last ninety days. Company insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Arlington Trust Co LLC grew its position in shares of Hut 8 by 175.0% in the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock worth $32,000 after buying an additional 175 shares during the last quarter. CoreCap Advisors LLC raised its holdings in shares of Hut 8 by 42.1% during the second quarter. CoreCap Advisors LLC now owns 540 shares of the company's stock valued at $62,000 after acquiring an additional 160 shares in the last quarter. GAMMA Investing LLC purchased a new stake in Hut 8 in the fourth quarter worth $30,000. Imprint Wealth LLC purchased a new stake in Hut 8 in the fourth quarter worth $38,000. Finally, Harbor Investment Advisory LLC bought a new stake in Hut 8 in the first quarter valued at $47,000. Hedge funds and other institutional investors own 31.75% of the company's stock.

About Hut 8

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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