Hut 8 (NASDAQ:HUT) Trading Up 3.1% - Here's Why

Key Points

• Hut 8 shares rose 3.1% to $89.82 in mid-day trading, with volume below its average. The stock has a market capitalization of approximately $11.07 billion and a high beta of 4.51.
• Analysts remain broadly bullish, with an average rating of “Buy” and an average price target of $144.89. Recent targets range from $124 to $195, while Freedom Capital upgraded the stock to “strong buy.”
• Hut 8 reported a quarterly loss of $1.27 per share, missing estimates by $0.72, while revenue of $74.93 million also fell short of expectations. The CFO sold shares to cover tax-withholding obligations, and institutional investors own 31.75% of the company.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s share price was up 3.1% during mid-day trading on Wednesday . The company traded as high as $94.10 and last traded at $89.82. Approximately 3,975,870 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 4,815,497 shares. The stock had previously closed at $87.09.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Compass Point set a $195.00 price target on shares of Hut 8 in a research report on Wednesday, July 22nd. 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. Rosenblatt Securities restated a "buy" rating and set a $124.00 price objective on shares of Hut 8 in a report on Wednesday, August 5th. Piper Sandler upped their price objective on Hut 8 from $127.00 to $143.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, Freedom Capital raised Hut 8 to a "strong-buy" rating in a research report on Tuesday, August 18th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Hut 8 currently has an average rating of "Buy" and an average price target of $144.89.

Hut 8 Trading Up 3.1%

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 $93.73 and its two-hundred day simple moving average is $88.22. The stock has a market capitalization of $11.07 billion, a price-to-earnings ratio of -16.48 and a beta of 4.51.

Hut 8 (NASDAQ:HUT - Get Free Report) last released 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 business had revenue of $74.93 million during the quarter, compared to analyst estimates of $79.37 million. During the same period in the previous year, the company earned $1.18 EPS. On average, research analysts anticipate that Hut 8 Corp. will post -2.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Sean Glennan sold 6,445 shares of the stock in a transaction 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 sale, the chief financial officer directly owned 17,978 shares in the company, valued at approximately $1,415,947.28. This represents a 26.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Investors Weigh In On Hut 8

Institutional investors and hedge funds have recently modified their holdings of the stock. Van Hulzen Asset Management LLC acquired a new stake in shares of Hut 8 during the second quarter valued at about $225,000. WINTON GROUP Ltd acquired a new position in shares of Hut 8 in the second quarter worth about $8,162,000. Engineers Gate Manager LP acquired a new position in shares of Hut 8 in the second quarter worth about $275,000. Steamboat Capital Partners LLC purchased a new position in Hut 8 in the second quarter valued at about $7,298,000. Finally, Allworth Financial LP boosted its holdings in Hut 8 by 18.5% in 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. 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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