Hut 8 (NASDAQ:HUT) Shares Climb 7.4% - Time to Buy?

Key Points

• Hut 8 shares rose 7.4% to about $92.73 in Friday trading, although volume was roughly 75% below the stock’s average session volume.
• Wall Street remains broadly bullish, with a consensus “Buy” rating and an average price target of $143.95; several firms recently set or raised targets near $195.
• The company’s latest quarter was weaker than expected, reporting a $1.27-per-share loss versus a projected $0.55 loss and revenue of $74.93 million below estimates. Insiders also sold shares, including a director’s $2 million transaction.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) traded up 7.4% during mid-day trading on Friday. The stock traded as high as $92.20 and last traded at $92.73. Approximately 1,215,226 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 4,772,250 shares. The stock had previously closed at $86.36.

Wall Street Analyst Weigh In

A number of research firms have recently commented on HUT. Benchmark raised their price objective on shares of Hut 8 from $165.00 to $195.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Freedom Capital upgraded shares of Hut 8 to a "strong-buy" rating in a research report on Tuesday, August 18th. Compass Point set a $195.00 price target on shares of Hut 8 in a research note on Wednesday, July 22nd. Needham & Company LLC dropped their price objective on shares of Hut 8 from $145.00 to $138.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Finally, UBS Group started coverage on Hut 8 in a research note on Wednesday, September 23rd. They issued a "buy" rating and a $143.00 target price on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Hut 8 has an average rating of "Buy" and a consensus target price of $143.95.

Hut 8 Price Performance

The company has a debt-to-equity ratio of 4.22, a quick ratio of 19.35 and a current ratio of 19.35. The business has a 50-day simple moving average of $91.98 and a 200 day simple moving average of $92.03. The firm has a market cap of $11.08 billion, a P/E ratio of -16.43 and a beta of 4.62.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($1.27) earnings per share for the quarter, missing analysts' consensus estimates of ($0.55) by ($0.72). The business had revenue of $74.93 million during the quarter, compared to the consensus estimate of $79.37 million. Hut 8 had a negative return on equity of 0.97% and a negative net margin of 188.59%.During the same quarter in the prior year, the business posted $1.18 earnings per share. On average, analysts anticipate that Hut 8 Corp. will post -2.98 earnings per share for the current fiscal year.

Insider Transactions at Hut 8

In related news, CFO Sean Glennan sold 6,445 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $78.76, for a total value of $507,608.20. Following the completion of the transaction, the chief financial officer directly owned 17,978 shares of the company's stock, valued at $1,415,947.28. This represents a 26.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Mayo Shattuck, III sold 20,000 shares of the firm's stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the director owned 89,408 shares of the company's stock, valued at $8,940,800. This trade represents a 18.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Hut 8

A number of hedge funds have recently bought and sold shares of HUT. BlackRock Inc. bought a new position in shares of Hut 8 in the second quarter worth approximately $1,093,294,000. Sachem Head Capital Management LP bought a new position in Hut 8 during the 4th quarter valued at about $129,780,000. Geode Capital Management LLC grew its stake in shares of Hut 8 by 3.2% in the fourth quarter. Geode Capital Management LLC now owns 2,593,916 shares of the company's stock worth $119,181,000 after acquiring an additional 79,591 shares during the period. Oasis Management Co Ltd. lifted its position in Hut 8 by 231.5% during the fourth quarter. Oasis Management Co Ltd. now owns 2,307,683 shares of the company's stock valued at $106,015,000 after purchasing an additional 1,611,653 shares during the period. Finally, Avala Global LP purchased a new stake in Hut 8 in the second quarter worth approximately $144,602,000. Institutional investors own 31.75% of the company's stock.

About Hut 8

Hut 8 Corp. NASDAQ: HUT is a North American energy infrastructure and digital asset mining company. Its operations include cryptocurrency mining, with a primary focus on Bitcoin, as well as the development and management of data center infrastructure supported by its energy resources.

The company owns and operates mining and data center facilities in the United States and Canada. In addition to self-mining digital assets, Hut 8 has pursued opportunities in high-performance computing and artificial intelligence infrastructure, using its power capacity, data center sites and related development capabilities to support evolving computing demand.

Hut 8 was originally established as Hut 8 Mining Corp., a Canadian cryptocurrency mining company.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.