Hut 8 Target of Unusually High Options Trading (NASDAQ:HUT)

Key Points

• Hut 8 Corp. experienced a significant surge in options trading with 39,355 call options purchased, marking a 52% increase from its average volume.
• Analysts are generally optimistic, with the consensus price target for Hut 8 set at $29.88, alongside majority ratings of "Buy" or higher from several equities research firms.
• Insider selling activity was noted, with the CFO and a director selling portions of their shares, representing a notable decrease in their ownership in the company.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) was the recipient of unusually large options trading on Friday. Stock investors bought 39,355 call options on the company. This represents an increase of approximately 52% compared to the average volume of 25,893 call options.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. BTIG Research increased their target price on Hut 8 from $25.00 to $33.00 and gave the stock a "buy" rating in a research note on Tuesday, September 9th. Rosenblatt Securities cut their target price 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 target price on Hut 8 from $23.00 to $30.00 and gave the stock 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. Finally, Roth Capital reissued a "buy" rating and set a $60.00 target price (up from $31.00) on shares of Hut 8 in a research note on Monday, September 15th. Three equities research analysts have rated the stock with a Strong Buy rating and sixteen have given a Buy rating to the company's stock. According to MarketBeat.com, Hut 8 has an average rating of "Buy" and a consensus price target of $29.88.

Hut 8 Price Performance

Hut 8 stock traded up $0.85 during midday trading on Friday, hitting $39.89. The stock had a trading volume of 5,070,705 shares, compared to its average volume of 5,740,189. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.19. Hut 8 has a 12 month low of $10.04 and a 12 month high of $41.64. The business has a fifty day moving average price of $27.30 and a 200 day moving average price of $19.80.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.14) EPS for the quarter, beating analysts' consensus estimates of ($0.15) by $0.01. The company 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%. On average, sell-side analysts expect that Hut 8 will post -0.53 EPS for the current year.

Insider Buying and Selling

In other Hut 8 news, CFO Sean Joseph Glennan sold 6,060 shares of the 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 transaction, the chief financial officer owned 6,295 shares in the company, valued at approximately $139,056.55. This represents a 49.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph Flinn sold 8,500 shares of the stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $26.55, for a total value of $225,675.00. Following the transaction, the director owned 9,791 shares in the company, valued at $259,951.05. This represents a 46.47% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 16,060 shares of company stock worth $399,485 in the last quarter. 11.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Nisa Investment Advisors LLC raised its stake in Hut 8 by 116.4% during the 2nd 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 during the period. Advisors Asset Management Inc. increased its stake 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 worth $30,000 after acquiring an additional 655 shares during the last quarter. State of Wyoming acquired a new position in shares of Hut 8 in the first quarter worth $32,000. US Bancorp DE increased its stake in shares of Hut 8 by 3,961.7% in 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 during the last quarter. Finally, Russell Investments Group Ltd. increased its stake in shares of Hut 8 by 235.8% in 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 during the last quarter. Institutional investors own 31.75% of the company's stock.

Hut 8 Company Profile

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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