Hut 8 (NASDAQ:HUT) Stock Price Up 7.4% on Analyst Upgrade

Key Points

• Hut 8 Corp. shares surged by 7.4% after BTIG Research upgraded their price target from $25.00 to $33.00, maintaining a buy rating on the stock.
• Despite the positive analyst outlook, trading volume declined by 54% with 2,577,622 shares exchanging hands during mid-day trading.
• Insider transactions included substantial sales by CFO Sean Joseph Glennan and Director Joseph Flinn, indicating a decrease in their ownership positions in the company.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) were up 7.4% on Wednesday after BTIG Research raised their price target on the stock from $25.00 to $33.00. BTIG Research currently has a buy rating on the stock. Hut 8 traded as high as $31.28 and last traded at $31.47. Approximately 2,577,622 shares traded hands during trading, a decline of 54% from the average daily volume of 5,647,981 shares. The stock had previously closed at $29.30.

Several other equities research analysts also recently issued reports on HUT. Rosenblatt Securities reduced their price objective on Hut 8 from $24.00 to $23.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Maxim Group increased their price objective on Hut 8 from $23.00 to $30.00 and gave the stock a "buy" rating in a research note on Monday, August 11th. Canaccord Genuity Group increased their price objective on Hut 8 from $32.00 to $36.00 and gave the stock a "buy" rating in a research note on Wednesday, August 20th. JMP Securities began coverage on Hut 8 in a research report on Thursday, May 22nd. They issued a "market outperform" rating and a $25.00 target price on the stock. Finally, Citigroup began coverage on Hut 8 in a research report on Thursday, May 22nd. They issued an "outperform" rating on the stock. Four analysts have rated the stock with a Strong Buy rating and fifteen have given a Buy rating to the stock. According to MarketBeat, Hut 8 currently has an average rating of "Buy" and an average target price of $27.82.

Insider Activity at Hut 8

In related news, CFO Sean Joseph Glennan sold 6,060 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $22.09, for a total transaction of $133,865.40. Following the completion of the transaction, the chief financial officer owned 6,295 shares in the company, valued at $139,056.55. This trade represents a 49.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Joseph Flinn sold 11,069 shares of Hut 8 stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $15.77, for a total value of $174,558.13. Following the completion of the transaction, the director owned 19,791 shares of the company's stock, valued at approximately $312,104.07. The trade was a 35.87% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 27,129 shares of company stock valued at $574,044 in the last 90 days. 11.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hut 8

A number of institutional investors have recently made changes to their positions in HUT. Nisa Investment Advisors LLC grew its stake in shares of Hut 8 by 116.4% during the second quarter. Nisa Investment Advisors LLC now owns 1,515 shares of the company's stock worth $28,000 after purchasing an additional 815 shares during the period. Advisors Asset Management Inc. lifted its holdings in shares of Hut 8 by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 1,613 shares of the company's stock valued at $30,000 after purchasing an additional 655 shares in the last quarter. State of Wyoming bought a new stake in shares of Hut 8 in the first quarter valued at about $32,000. US Bancorp DE raised its holdings in Hut 8 by 3,961.7% during the first quarter. US Bancorp DE now owns 3,290 shares of the company's stock worth $38,000 after acquiring an additional 3,209 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in Hut 8 by 235.8% during the second quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company's stock worth $46,000 after acquiring an additional 1,719 shares in the last quarter. 31.75% of the stock is owned by institutional investors and hedge funds.

Hut 8 Stock Performance

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 firm has a fifty day moving average of $23.25 and a 200-day moving average of $17.65.

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

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.