Hut 8 (NASDAQ:HUT) Stock Price Up 7.5% - What's Next?

Key Points

• Hut 8 shares rose 7.5% to approximately $65.82, although trading volume was about 76% below the average session volume.
• Analysts maintain a generally bullish view, with an average “Buy” rating and a consensus price target of $148.09; however, individual targets and ratings vary widely.
• The company reported a larger-than-expected quarterly loss of $1.27 per share and revenue below estimates, while two insiders recently sold shares, reducing their holdings.

Shares of Hut 8 Corp. (NASDAQ:HUT - Get Free Report) shot up 7.5% on Monday. The company traded as high as $63.88 and last traded at $65.8240. Approximately 1,187,375 shares traded hands during trading, a decline of 76% from the average session volume of 4,936,863 shares. The stock had previously closed at $61.23.

Wall Street Analyst Weigh In

HUT has been the topic of a number of research reports. Compass Point set a $195.00 price objective on Hut 8 in a report on Wednesday, July 22nd. Morgan Stanley lifted their price objective on shares of Hut 8 from $273.00 to $275.00 and gave the company an "overweight" rating in a research note on Friday, October 9th. Wall Street Zen cut Hut 8 from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Cantor Fitzgerald reduced their price objective on Hut 8 from $180.00 to $151.00 and set an "overweight" rating for the company in a research report on Friday, October 16th. Finally, UBS Group reissued a "buy" rating on shares of Hut 8 in a research note on Thursday, October 8th. Four research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Hut 8 has an average rating of "Buy" and a consensus target price of $148.09.

Hut 8 Price Performance

The stock has a market cap of $8.00 billion, a price-to-earnings ratio of -11.86 and a beta of 4.62. 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 business's 50-day simple moving average is $86.12 and its two-hundred day simple moving average is $95.22.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted 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 company had revenue of $74.93 million during the quarter, compared to the consensus estimate of $79.37 million. Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. During the same quarter in the prior year, the business earned $1.18 EPS. Research analysts expect that Hut 8 Corp. will post -2.93 earnings per share for the current year.

Insider Activity at Hut 8

In other news, Director Mayo Shattuck, III sold 20,000 shares of the company's stock in a transaction on Thursday, September 24th. The stock was 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 $8,940,800. This represents a 18.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Sean Glennan sold 6,445 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $78.76, for a total value of $507,608.20. Following the sale, the chief financial officer owned 17,978 shares of the company's stock, valued at approximately $1,415,947.28. This represents a 26.39% decrease in their ownership of the stock. 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 Investors Weigh In On Hut 8

Institutional investors have recently added to or reduced their stakes in the stock. Apollon Wealth Management LLC increased its holdings in Hut 8 by 21.9% during the 3rd quarter. Apollon Wealth Management LLC now owns 2,856 shares of the company's stock worth $246,000 after purchasing an additional 513 shares during the period. Sterling Capital Management LLC lifted its position in Hut 8 by 130.3% during the third quarter. Sterling Capital Management LLC now owns 2,752 shares of the company's stock worth $237,000 after buying an additional 1,557 shares during the period. SBI Securities Co. Ltd. lifted its position in Hut 8 by 32.2% during the third quarter. SBI Securities Co. Ltd. now owns 1,629 shares of the company's stock valued at $140,000 after buying an additional 397 shares in the last quarter. SteelPeak Wealth LLC acquired a new stake in shares of Hut 8 during the third quarter valued at about $722,000. Finally, IFP Advisors Inc raised its stake in Hut 8 by 14.0% during the third quarter. IFP Advisors Inc now owns 6,387 shares of the company's stock valued at $550,000 after buying an additional 786 shares in the last quarter. Institutional investors and hedge funds own 31.75% of the company's stock.

About Hut 8

Hut 8 Corp. is a North American energy infrastructure and computing company whose business includes digital asset mining, high-performance computing and data center operations. The company develops and manages power and infrastructure assets intended to support energy-intensive computing applications.

Hut 8's activities have historically centered on Bitcoin mining, supported by company-operated data centers and specialized mining equipment. It also provides infrastructure for emerging computing applications, including artificial intelligence and other high-performance computing workloads, as it seeks to expand beyond cryptocurrency mining.

The company was established in Canada and expanded its operations in the United States through its combination with U.S.

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