Hut 8 (NASDAQ:HUT) Stock Price Down 9.5% - Here's Why

Key Points

• Hut 8 shares fell 9.5% to about $56.06, while trading volume was 91% below its average.
• Several analysts cut their price targets, including Cantor Fitzgerald ($151 to $127) and Wells Fargo ($175 to $148), though the consensus rating remains “Buy” with a $134.05 target.
• Hut 8 beat quarterly EPS estimates, reporting $0.98 versus an expected loss of $0.72, but revenue of $71.07 million came in below the $75.78 million consensus.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s share price fell 9.5% during trading on Friday. The company traded as low as $57.26 and last traded at $56.0610. 445,380 shares were traded during mid-day trading, a decline of 91% from the average session volume of 5,060,241 shares. The stock had previously closed at $61.97.

Analysts Set New Price Targets

HUT has been the topic of a number of recent analyst reports. Cantor Fitzgerald lowered their price target on shares of Hut 8 from $151.00 to $127.00 and set an "overweight" rating on the stock in a research note on Thursday, November 5th. Piper Sandler reduced their price objective on shares of Hut 8 from $143.00 to $123.00 and set an "overweight" rating for the company in a research note on Tuesday, October 20th. Wall Street Zen raised shares of Hut 8 from a "strong sell" rating to a "sell" rating in a report on Saturday, November 7th. Wells Fargo & Company lowered their target price on shares of Hut 8 from $175.00 to $148.00 and set an "overweight" rating on the stock in a research report on Thursday, November 5th. Finally, Canaccord Genuity Group reaffirmed a "buy" rating and issued a $130.00 target price on shares of Hut 8 in a report on Wednesday, October 7th. Four research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Hut 8 has an average rating of "Buy" and a consensus target price of $134.05.

Hut 8 Stock Down 8.1%

The firm's 50-day moving average price is $79.35 and its 200 day moving average price is $82.22. The firm has a market capitalization of $6.83 billion, a price-to-earnings ratio of -11.58 and a beta of 4.53. The company has a debt-to-equity ratio of 3.84, a current ratio of 9.48 and a quick ratio of 9.48.

Hut 8 (NASDAQ:HUT - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported $0.98 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.72) by $1.70. The firm had revenue of $71.07 million during the quarter, compared to the consensus estimate of $75.78 million. Hut 8 had a negative return on equity of 9.68% and a negative net margin of 169.76%. Sell-side analysts expect that Hut 8 Corp. will post -0.64 EPS for the current year.

Insiders Place Their Bets

In related news, 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 in the company, valued at approximately $1,415,947.28. This trade represents a 26.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Mayo A. Shattuck III sold 20,000 shares of the business'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 completion of the transaction, the director directly owned 89,408 shares of the company's stock, valued at $8,940,800. The trade was a 18.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 10.40% of the company's stock.

Institutional Investors Weigh In On Hut 8

A number of hedge funds and other institutional investors have recently modified their holdings of HUT. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Hut 8 during the 3rd quarter worth about $258,000. Advisors Asset Management Inc. purchased a new position in Hut 8 in the third quarter valued at approximately $37,000. PCG Wealth Advisors LLC purchased a new position in Hut 8 in the third quarter valued at approximately $256,000. Voya Investment Management LLC lifted its position in Hut 8 by 424.9% during the third quarter. Voya Investment Management LLC now owns 929,317 shares of the company's stock valued at $80,014,000 after buying an additional 752,275 shares in the last quarter. Finally, Cibc World Market Inc. lifted its position in Hut 8 by 29.1% during the third quarter. Cibc World Market Inc. now owns 4,730 shares of the company's stock valued at $407,000 after buying an additional 1,066 shares in the last quarter. 31.75% of the stock is currently owned by hedge funds and other institutional investors.

About Hut 8

Hut 8 is a North American energy and digital infrastructure company whose businesses include Bitcoin mining, data centers and computing services. It develops and operates facilities that support digital asset mining and other high-performance computing workloads. The company's services include infrastructure and managed services for Bitcoin mining, as well as data center capacity and computing solutions. Hut 8 also works on developing and operating energy infrastructure to support its facilities.

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