Hut 8 (NASDAQ:HUT) Trading Down 7.7% - What's Next?

Key Points

• Hut 8 Corp. experienced a 7.7% drop in stock price, trading at approximately $22.55, with a significant decrease in trading volume compared to the average.
• Several analysts have set price targets for Hut 8, with four analysts rating it as a Strong Buy and predicting an average target price of $26.71, despite a recent downgrade from Rosenblatt Securities.
• Hedge funds have shown increased interest in Hut 8, with notable boosts in stakes from firms such as Nisa Investment Advisors and Russell Investments Group, indicating a broader institutional confidence in the company.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) shares were down 7.7% during mid-day trading on Tuesday . The stock traded as low as $22.70 and last traded at $22.55. Approximately 2,697,414 shares traded hands during trading, a decline of 52% from the average daily volume of 5,628,177 shares. The stock had previously closed at $24.42.

Analysts Set New Price Targets

HUT has been the topic of several analyst reports. Maxim Group increased their target price on Hut 8 from $23.00 to $30.00 and gave the company a "buy" rating in a research note on Monday, August 11th. Northland Securities set a $26.00 target price on Hut 8 in a research note on Friday, July 11th. Roth Capital initiated coverage on Hut 8 in a research note on Friday, June 6th. They issued a "buy" rating and a $25.00 target price on the stock. Needham & Company LLC reissued a "buy" rating and issued a $21.00 target price on shares of Hut 8 in a research note on Friday, May 9th. Finally, HC Wainwright reissued a "buy" rating and issued a $25.00 target price on shares of Hut 8 in a research note on Friday, May 9th. Four equities research analysts have rated the stock with a Strong Buy rating and fifteen have given a Buy rating to the stock. According to data from MarketBeat, Hut 8 presently has an average rating of "Buy" and a consensus target price of $26.94.

Hut 8 Price Performance

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 stock's 50 day moving average is $20.51 and its two-hundred day moving average is $16.77.

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 (EPS) for the quarter, topping analysts' consensus estimates of ($0.15) by $0.01. The business had revenue of $41.72 million during the quarter, compared to the consensus estimate of $49.10 million. Hut 8 had a return on equity of 8.73% and a net margin of 112.81%. Sell-side analysts expect that Hut 8 Corp. will post -0.53 earnings per share for the current year.

Insider Activity

In related news, Director Joseph Flinn sold 11,069 shares of the stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $15.77, for a total transaction of $174,558.13. Following the completion of the transaction, the director directly owned 19,791 shares in the company, valued at approximately $312,104.07. This trade represents a 35.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 11.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Tactive Advisors LLC bought a new position in shares of Hut 8 during the second quarter worth about $1,225,000. Vident Advisory LLC grew its holdings in shares of Hut 8 by 1.5% during the second quarter. Vident Advisory LLC now owns 501,053 shares of the company's stock worth $9,319,000 after buying an additional 7,564 shares in the last quarter. Moore Capital Management LP acquired a new position in Hut 8 during the second quarter valued at approximately $9,159,000. BNP Paribas Financial Markets boosted its position in Hut 8 by 3,160.4% during the second quarter. BNP Paribas Financial Markets now owns 150,108 shares of the company's stock valued at $2,792,000 after purchasing an additional 145,504 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its position in Hut 8 by 1,043.0% during the second quarter. Ameriprise Financial Inc. now owns 2,486,814 shares of the company's stock valued at $46,255,000 after purchasing an additional 2,269,237 shares during the last quarter. 31.75% of the stock is currently owned by 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.