Hut 8 (NASDAQ:HUT) Shares Down 7.6% - Time to Sell?

Key Points

• Hut 8 shares fell 7.6% to $91.13 in mid-day trading, with volume about 30% above the average session level.
• Despite the decline, analysts maintain a consensus “Buy” rating and an average price target of $144.89, implying substantial upside from the current price.
• The company reported a larger-than-expected quarterly loss of $1.27 per share and revenue below forecasts; insiders have also recently sold shares, while Hut 8 remains unprofitable with a negative net margin.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) was down 7.6% during mid-day trading on Monday . The stock traded as low as $88.50 and last traded at $91.13. Approximately 6,268,054 shares were traded during mid-day trading, an increase of 30% from the average session volume of 4,824,375 shares. The stock had previously closed at $98.60.

Wall Street Analyst Weigh In

HUT has been the topic of a number of analyst reports. Piper Sandler upped their target price on Hut 8 from $127.00 to $143.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Wall Street Zen cut Hut 8 from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Freedom Capital upgraded Hut 8 to a "strong-buy" rating in a research report on Tuesday, August 18th. Loop Capital set a $226.00 price target on shares of Hut 8 in a report on Monday, June 22nd. Finally, Maxim Group upgraded shares of Hut 8 to a "strong-buy" rating in a report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $144.89.

Hut 8 Stock Performance

The company has a quick ratio of 19.35, a current ratio of 19.35 and a debt-to-equity ratio of 4.22. The firm has a 50 day moving average price of $94.17 and a 200 day moving average price of $87.77. The stock has a market cap of $11.23 billion, a PE ratio of -16.72 and a beta of 4.51.

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 analysts' consensus estimates of ($0.55) by ($0.72). The business had revenue of $74.93 million during the quarter, compared to analysts' expectations 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 period last year, the company earned $1.18 earnings per share. As a group, research analysts forecast that Hut 8 Corp. will post -2.85 earnings per share for the current year.

Insider Buying and Selling

In other Hut 8 news, insider Victor Semah sold 10,000 shares of the company's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total transaction of $1,250,000.00. Following the completion of the sale, the insider owned 31,378 shares in the company, valued at $3,922,250. This represents a 24.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Sean Glennan sold 6,445 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $78.76, for a total value of $507,608.20. Following the sale, the chief financial officer directly owned 17,978 shares in the company, valued at $1,415,947.28. This trade represents a 26.39% decrease in their position. 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. 10.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hut 8

A number of institutional investors have recently added to or reduced their stakes in the stock. Arizona State Retirement System raised its stake in shares of Hut 8 by 0.5% in the second quarter. Arizona State Retirement System now owns 27,320 shares of the company's stock worth $3,154,000 after purchasing an additional 125 shares during the last quarter. CoreCap Advisors LLC boosted its position in Hut 8 by 42.1% in the second quarter. CoreCap Advisors LLC now owns 540 shares of the company's stock valued at $62,000 after buying an additional 160 shares during the last quarter. Arlington Trust Co LLC increased its holdings in Hut 8 by 175.0% in the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock worth $32,000 after buying an additional 175 shares during the period. Allworth Financial LP raised its position in Hut 8 by 18.5% during the 2nd quarter. Allworth Financial LP now owns 1,364 shares of the company's stock worth $157,000 after buying an additional 213 shares during the last quarter. Finally, GAMMA Investing LLC raised its position in Hut 8 by 35.0% during the 2nd quarter. GAMMA Investing LLC now owns 1,057 shares of the company's stock worth $122,000 after buying an additional 274 shares during the last quarter. Institutional investors own 31.75% of the company's stock.

Hut 8 Company Profile

Hut 8 Corp. NASDAQ: HUT is a North American energy infrastructure and digital asset mining company. The company develops and operates data centers, power-generation resources and other infrastructure that support energy-intensive computing applications, including Bitcoin mining.

Hut 8 also provides services related to digital asset mining and data center operations, while pursuing opportunities in high-performance computing and artificial intelligence infrastructure. Its business is supported by a portfolio of power and data center sites in the United States and Canada.

The company was formed through the combination of Canadian Bitcoin miner Hut 8 Mining Corp.

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