Hut 8 (NASDAQ:HUT) Stock Price Up 8.5% After Analyst Upgrade

Key Points

• Hut 8 shares jumped 8.5% to $98.74 after Wells Fargo upgraded the stock to a strong-buy rating, with trading volume 53% above its average.
• Analyst sentiment is broadly positive: MarketBeat reports a consensus “Buy” rating and a $146.40 price target, supported by four Strong Buy and 17 Buy ratings.
• The company reported a quarterly loss of $1.27 per share and revenue of $74.93 million, missing analyst expectations on both measures; its CFO also sold shares to cover tax withholding on vested equity awards.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s stock price shot up 8.5% during mid-day trading on Friday after Wells Fargo & Company upgraded the stock to a strong-buy rating. The company traded as high as $99.03 and last traded at $98.74. 7,373,218 shares were traded during trading, an increase of 53% from the average daily volume of 4,832,536 shares. The stock had previously closed at $90.99.

Several other research analysts have also recently issued reports on the company. Loop Capital set a $226.00 price target on Hut 8 in a report on Monday, June 22nd. Compass Point set a $195.00 target price on Hut 8 in a report on Wednesday, July 22nd. Benchmark boosted their target price on Hut 8 from $165.00 to $195.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. Needham & Company LLC reduced their target price on Hut 8 from $145.00 to $138.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Finally, Morgan Stanley started coverage on Hut 8 in a research report on Thursday, July 23rd. They issued an "overweight" rating and a $263.00 price target for the company. Four research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Hut 8 has a consensus rating of "Buy" and a consensus target price of $146.40.

Insider Buying and Selling

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of the company's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $78.76, for a total value of $507,608.20. Following the transaction, the chief financial officer owned 17,978 shares in the company, valued at approximately $1,415,947.28. This represents a 26.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Van Hulzen Asset Management LLC acquired a new position in shares of Hut 8 during the 2nd quarter valued at about $225,000. WINTON GROUP Ltd bought a new stake in Hut 8 during the second quarter worth approximately $8,162,000. Engineers Gate Manager LP bought a new stake in Hut 8 during the second quarter worth approximately $275,000. Steamboat Capital Partners LLC acquired a new position in Hut 8 during the second quarter valued at approximately $7,298,000. Finally, Allworth Financial LP grew its holdings in 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 purchasing an additional 213 shares during the last quarter. Institutional investors and hedge funds own 31.75% of the company's stock.

Hut 8 Stock Performance

The company has a market cap of $12.17 billion, a P/E ratio of -18.12 and a beta of 4.51. 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 stock's 50-day moving average price is $93.10 and its 200 day moving average price is $88.73.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($1.27) earnings per share (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 firm had revenue of $74.93 million for the quarter, compared to the consensus estimate of $79.37 million. During the same period in the prior year, the company posted $1.18 earnings per share. As a group, research analysts expect that Hut 8 Corp. will post -2.85 EPS for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.