Hut 8 (NASDAQ:HUT) Trading Down 8.2% - Here's What Happened

Key Points

• Hut 8 shares fell 8.2% to $80.79 in heavy trading, with volume about 25% above the average session level.
• The company’s latest quarterly results missed expectations: it reported an adjusted loss of $1.27 per share versus the consensus loss estimate of $0.55, while revenue of $72.66 million came in below the $79.37 million forecast.
• Despite the selloff, analysts maintain a consensus “Buy” rating with a $144.89 target price; however, insiders sold 68,219 shares worth approximately $7.72 million over the past three months.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) shares were down 8.2% on Tuesday . The company traded as low as $80.25 and last traded at $80.79. 6,023,221 shares changed hands during mid-day trading, an increase of 25% from the average session volume of 4,813,589 shares. The stock had previously closed at $88.04.

Analyst Upgrades and Downgrades

HUT has been the subject of several recent analyst reports. Citigroup reiterated an "outperform" rating on shares of Hut 8 in a report on Tuesday, April 28th. Wall Street Zen downgraded shares of Hut 8 from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $124.00 price objective on shares of Hut 8 in a research note on Wednesday, August 5th. Benchmark lifted their price objective on shares of Hut 8 from $165.00 to $195.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. Finally, BTIG Research boosted their target price on shares of Hut 8 from $115.00 to $150.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Hut 8 has a consensus rating of "Buy" and a consensus target price of $144.89.

Hut 8 Stock Performance

The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35. The firm has a market capitalization of $9.95 billion, a price-to-earnings ratio of -14.81 and a beta of 4.64. The firm's fifty day moving average is $105.15 and its 200 day moving average is $83.52.

Hut 8 (NASDAQ:HUT - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($1.27) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.72). Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. The company had revenue of $72.66 million during the quarter, compared to analyst estimates of $79.37 million. During the same quarter in the prior year, the company posted $1.18 EPS. On average, analysts predict that Hut 8 Corp. will post -2.85 EPS for the current fiscal year.

Insider Activity

In related news, insider Victor Semah sold 10,000 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total value of $1,250,000.00. Following the transaction, the insider owned 31,378 shares in the company, valued at approximately $3,922,250. This represents a 24.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Joseph Flinn sold 7,719 shares of Hut 8 stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $117.91, for a total transaction of $910,147.29. Following the completion of the sale, the director owned 10,519 shares of the company's stock, valued at $1,240,295.29. This trade represents a 42.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 68,219 shares of company stock worth $7,720,152 in the last three months. 10.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Hut 8 during the 2nd quarter valued at $1,093,294,000. Vanguard Group Inc. increased its position in Hut 8 by 3.2% during the fourth quarter. Vanguard Group Inc. now owns 7,978,357 shares of the company's stock worth $366,526,000 after buying an additional 250,320 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Hut 8 by 4,669,387.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 4,062,454 shares of the company's stock worth $186,629,000 after buying an additional 4,062,367 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in Hut 8 by 20.3% during the third quarter. Ameriprise Financial Inc. now owns 2,991,466 shares of the company's stock valued at $104,133,000 after buying an additional 504,652 shares in the last quarter. Finally, SRS Investment Management LLC bought a new position in Hut 8 during the fourth quarter valued at about $131,838,000. Institutional investors and hedge funds own 31.75% of the company's stock.

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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