Hut 8 (NASDAQ:HUT) Trading 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.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) shares shot 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. 2,577,622 shares were traded during mid-day trading, a decline of 54% from the average session volume of 5,647,981 shares. The stock had previously closed at $29.30.

Several other research firms have also recently weighed in on HUT. Roth Capital began coverage on shares of Hut 8 in a report on Friday, June 6th. They set a "buy" rating and a $25.00 price target on the stock. Citizens Jmp upgraded shares of Hut 8 to a "strong-buy" rating and set a $25.00 price target on the stock in a research note on Thursday, May 22nd. Rosenblatt Securities dropped their price target on shares of Hut 8 from $24.00 to $23.00 and set a "buy" rating on the stock in a research note on Monday, August 11th. Northland Securities set a $26.00 target price on shares of Hut 8 in a report on Friday, July 11th. Finally, Citigroup began coverage on shares of Hut 8 in a report on Thursday, May 22nd. They set an "outperform" rating on the stock. Four analysts have rated the stock with a Strong Buy rating and fifteen have issued a Buy rating to the company's stock. According to MarketBeat, Hut 8 has a consensus rating of "Buy" and a consensus price target of $27.82.

Insider Activity

In related news, CFO Sean Joseph Glennan sold 6,060 shares of the 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 transaction, the chief financial officer directly owned 6,295 shares in the company, valued at $139,056.55. This trade represents a 49.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph Flinn sold 8,500 shares of the stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $26.55, for a total transaction of $225,675.00. Following the completion of the transaction, the director owned 9,791 shares of the company's stock, valued at approximately $259,951.05. The trade was a 46.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 27,129 shares of company stock valued at $574,044. Corporate insiders own 11.20% of the company's stock.

Institutional Trading of Hut 8

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

Hut 8 Trading Up 8.3%

The firm's fifty day simple moving average is $22.64 and its two-hundred day simple moving average is $17.29. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.19.

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

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