Hut 8 (NASDAQ:HUT) Stock Falls 7.5% - Here's What Happened

Key Points

• Hut 8 shares fell 7.5% to about $82.63, with trading volume 69% below the average session volume.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $145.23 price target, despite Weiss Ratings downgrading the stock to “Sell.”
• The company’s latest quarterly results missed expectations: Hut 8 reported a $1.27 loss per share versus the expected $0.55 loss and revenue of $74.93 million versus the $79.37 million estimate.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s share price was down 7.5% during trading on Thursday. The company traded as low as $82.64 and last traded at $82.6310. 1,489,687 shares were traded during trading, a decline of 69% from the average session volume of 4,798,184 shares. The stock had previously closed at $89.30.

Analyst Ratings Changes

A number of analysts recently issued reports on HUT shares. Benchmark lifted their target price on Hut 8 from $165.00 to $195.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Loop Capital set a $226.00 price target on Hut 8 in a research report on Monday, June 22nd. Wells Fargo & Company began coverage on Hut 8 in a research note on Thursday, September 17th. They issued an "overweight" rating and a $175.00 price target for the company. Canaccord Genuity Group reaffirmed a "buy" rating and set a $130.00 price target on shares of Hut 8 in a research report on Wednesday. Finally, Weiss Ratings cut Hut 8 from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, August 19th. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Hut 8 presently has an average rating of "Buy" and an average price target of $145.23.

Hut 8 Trading Down 9.0%

The business has a fifty day moving average price of $91.11 and a 200-day moving average price of $93.14. 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 market cap of $10.01 billion, a P/E ratio of -14.92 and a beta of 4.62.

Hut 8 (NASDAQ:HUT - Get Free Report) last announced its earnings results 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 firm had revenue of $74.93 million for 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 last year, the business posted $1.18 EPS. On average, analysts forecast that Hut 8 Corp. will post -2.98 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Mayo A. Shattuck III sold 20,000 shares of the firm's stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the transaction, the director directly owned 89,408 shares of the company's stock, valued at approximately $8,940,800. This trade represents a 18.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Sean Glennan sold 6,445 shares of Hut 8 stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $78.76, for a total transaction of $507,608.20. Following the completion of the sale, the chief financial officer owned 17,978 shares of the company's stock, 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. Corporate insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Strong Retirement Solutions LLC bought a new position in shares of Hut 8 during the third quarter worth approximately $2,377,000. Two Seas Capital LP boosted its stake in shares of Hut 8 by 120.1% in the third quarter. Two Seas Capital LP now owns 347,942 shares of the company's stock valued at $29,958,000 after buying an additional 189,860 shares during the period. Van Hulzen Asset Management LLC acquired a new stake in Hut 8 during the second quarter worth approximately $225,000. WINTON GROUP Ltd acquired a new stake in Hut 8 during the second quarter worth approximately $8,162,000. Finally, Engineers Gate Manager LP bought a new position in Hut 8 during the 2nd quarter worth $275,000. Institutional investors and hedge funds 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. 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.

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