Hut 8 (NASDAQ:HUT) Stock Price Down 5.5% - Time to Sell?

Key Points

• Hut 8 shares fell 5.5% to $90.60 in midday trading, with volume below its average. Despite the decline, analysts maintain a consensus “Buy” rating and an average price target of $144.89.
• The company’s latest quarterly results were weaker than expected, with a $1.27 per-share loss versus the projected $0.55 loss and revenue of $74.93 million, below the $79.37 million estimate.
• Insiders have been selling shares: executives sold 24,164 shares worth roughly $2.67 million over the past 90 days, while institutional investors own 31.75% of the stock.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) traded down 5.5% on Thursday . The company traded as low as $88.50 and last traded at $90.60. Approximately 3,464,027 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 4,812,691 shares. The stock had previously closed at $95.92.

Analysts Set New Price Targets

A number of research firms recently weighed in on HUT. Freedom Broker raised Hut 8 to a "strong-buy" rating in a research report on Tuesday, August 18th. Morgan Stanley started coverage on Hut 8 in a research report on Thursday, July 23rd. They set an "overweight" rating and a $263.00 price objective on the stock. Benchmark boosted their price target on Hut 8 from $165.00 to $195.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. Wall Street Zen cut Hut 8 from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Finally, Needham & Company LLC decreased their price target on shares of Hut 8 from $145.00 to $138.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $144.89.

Hut 8 Stock Performance

The firm has a market cap of $11.17 billion, a price-to-earnings ratio of -16.62 and a beta of 4.51. The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35. The firm has a fifty day simple moving average of $94.28 and a two-hundred day simple moving average of $87.19.

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 analysts' consensus estimates of ($0.55) by ($0.72). The firm had revenue of $74.93 million for the quarter, compared to analyst estimates 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 in the prior year, the firm posted $1.18 EPS. On average, analysts expect that Hut 8 Corp. will post -2.85 EPS for the current year.

Insider Activity at Hut 8

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of the business's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $78.76, for a total transaction of $507,608.20. Following the transaction, the chief financial officer owned 17,978 shares of the company's stock, valued at approximately $1,415,947.28. The trade was a 26.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total value of $1,250,000.00. Following the transaction, the insider owned 31,378 shares of the company's stock, valued at approximately $3,922,250. This represents 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 24,164 shares of company stock valued at $2,667,755. 10.40% of the stock is currently owned by insiders.

Institutional Trading of Hut 8

Several institutional investors have recently modified their holdings of the stock. Arlington Trust Co LLC boosted its stake in Hut 8 by 175.0% during the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company's stock worth $32,000 after purchasing an additional 175 shares during the period. Imprint Wealth LLC purchased a new position in Hut 8 in the fourth quarter valued at about $38,000. Parkside Financial Bank & Trust grew its holdings in Hut 8 by 258.5% in the second quarter. Parkside Financial Bank & Trust now owns 380 shares of the company's stock valued at $44,000 after purchasing an additional 274 shares during the last quarter. Russell Investments Group Ltd. grew its position in shares of Hut 8 by 235.8% in the second quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company's stock valued at $46,000 after purchasing an additional 1,719 shares during the last quarter. Finally, Harbor Investment Advisory LLC acquired a new position in shares of Hut 8 in the first quarter worth $47,000. Hedge funds and other 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. 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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