Hut 8 (NASDAQ:HUT) Stock Price Down 5.4% - Time to Sell?

Key Points

• Hut 8 shares fell 5.4% to about $96.06 in thin mid-day trading, while the stock remains highly volatile with a beta of 4.51.
• Despite the decline, Wall Street sentiment is broadly positive: 22 of 24 analysts rate the stock Buy or Strong Buy, with a consensus price target of $143.95 versus the current price.
• The company’s latest quarterly results were weaker than expected, with an EPS loss of $1.27 versus the projected $0.55 loss and revenue of $74.93 million below estimates; analysts expect a full-year loss of $2.85 per share.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) traded down 5.4% on Friday. The stock traded as low as $98.40 and last traded at $96.0550. 384,749 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 4,795,767 shares. The stock had previously closed at $101.54.

Wall Street Analyst Weigh In

HUT has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods decreased their target price on Hut 8 from $157.00 to $154.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Weiss Ratings downgraded Hut 8 from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, August 19th. Freedom Capital raised shares of Hut 8 to a "strong-buy" rating in a report on Tuesday, August 18th. Needham & Company LLC lowered their price objective on shares of Hut 8 from $145.00 to $138.00 and set a "buy" rating for the company in a research note on Wednesday, August 5th. Finally, Morgan Stanley began coverage on Hut 8 in a research report on Thursday, July 23rd. They issued an "overweight" rating and a $263.00 target price on the stock. Three analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $143.95.

Hut 8 Trading Down 2.7%

The company has a market capitalization of $12.17 billion, a price-to-earnings ratio of -18.09 and a beta of 4.51. 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's 50-day simple moving average is $93.46 and its 200-day simple moving average is $90.56.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($1.27) EPS for the quarter, missing the consensus estimate of ($0.55) by ($0.72). Hut 8 had a negative return on equity of 0.97% and a negative net margin of 188.59%.The business had revenue of $74.93 million for the quarter, compared to analyst estimates of $79.37 million. During the same quarter in the prior year, the firm earned $1.18 EPS. On average, research analysts expect that Hut 8 Corp. will post -2.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Sean Glennan sold 6,445 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was 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 legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Van Hulzen Asset Management LLC bought a new position in shares of Hut 8 in the second quarter valued at approximately $225,000. WINTON GROUP Ltd purchased a new position in shares of Hut 8 in the second quarter worth $8,162,000. Engineers Gate Manager LP purchased a new stake in Hut 8 in the 2nd quarter worth approximately $275,000. Steamboat Capital Partners LLC bought a new stake in Hut 8 in the second quarter valued at $7,298,000. Finally, Allworth Financial LP increased its position in shares of Hut 8 by 18.5% during the second quarter. Allworth Financial LP now owns 1,364 shares of the company's stock valued at $157,000 after buying an additional 213 shares during the period. 31.75% of the stock is owned by institutional investors.

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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