Hut 8 (NASDAQ:HUT) Shares Gap Up - Time to Buy?

Key Points

• Hut 8 shares opened sharply higher, rising from a prior close of $85.00 to $89.45 before trading around $87.25. The stock has a consensus “Buy” rating and an average analyst price target of $144.89, although ratings range from “Strong Buy” to “Strong Sell.”
• The company’s latest quarterly results were weaker than expected, with a loss of $1.27 per share versus the anticipated $0.55 loss and revenue of $72.66 million against estimates of $79.37 million. Analysts expect Hut 8 to report a full-year loss of $2.85 per share.
• Insiders have been net sellers, disposing of 54,664 shares worth about $6.2 million over the past 90 days, while institutional investors own 31.75% of the stock. Hut 8 also carries high volatility, reflected in its beta of 4.64.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $85.00, but opened at $89.45. Hut 8 shares last traded at $87.2520, with a volume of 490,163 shares.

Analyst Upgrades and Downgrades

HUT has been the topic of several recent research reports. Wall Street Zen lowered Hut 8 from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Northland Securities set a $120.00 price target on shares of Hut 8 in a research report on Thursday, May 7th. BTIG Research increased their price target on shares of Hut 8 from $115.00 to $150.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Freedom Broker raised shares of Hut 8 to a "strong-buy" rating in a research note on Tuesday, August 18th. Finally, Loop Capital set a $226.00 price objective on shares of Hut 8 in a report on Monday, June 22nd. Three equities 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's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target 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 company has a fifty day moving average price of $100.52 and a 200 day moving average price of $84.83. The stock has a market cap of $11.04 billion, a PE ratio of -16.43 and a beta of 4.64.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($1.27) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.72). Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. The company had revenue of $72.66 million for the quarter, compared to analysts' expectations of $79.37 million. During the same quarter in the prior year, the company earned $1.18 earnings per share. Analysts expect that Hut 8 Corp. will post -2.85 earnings per share for the current year.

Insider Buying and Selling at Hut 8

In other news, CFO Sean Joseph Glennan sold 6,445 shares of the firm's stock in a transaction that occurred 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 transaction, the chief financial officer owned 17,978 shares in the company, valued at approximately $1,415,947.28. This trade represents a 26.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Victor Semah sold 10,000 shares of Hut 8 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 transaction, the insider directly owned 31,378 shares in the company, valued at approximately $3,922,250. The trade was a 24.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 54,664 shares of company stock worth $6,212,160. 10.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Hut 8

A number of large investors have recently added to or reduced their stakes in HUT. Dimensional Fund Advisors LP lifted its holdings in Hut 8 by 11.1% in the first quarter. Dimensional Fund Advisors LP now owns 207,619 shares of the company's stock worth $9,717,000 after buying an additional 20,813 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Hut 8 by 4,669,387.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 4,062,454 shares of the company's stock worth $186,629,000 after acquiring an additional 4,062,367 shares during the period. Handelsbanken Fonder AB purchased a new position in shares of Hut 8 during the 4th quarter worth approximately $1,153,000. Dayah Capital LLC raised its position in shares of Hut 8 by 12.6% in the 1st quarter. Dayah Capital LLC now owns 217,920 shares of the company's stock worth $10,223,000 after acquiring an additional 24,456 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Hut 8 in the 1st quarter worth approximately $4,358,000. Institutional investors own 31.75% of the company's stock.

About Hut 8

Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high‐performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose‐built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low‐cost, low‐carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.

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