Hut 8 (NASDAQ:HUT) Trading Up 8.8% - Here's Why

Key Points

• Hut 8 shares jumped 8.8% to $98.60, reaching as high as $101.27, with trading volume 18% above its average.
• Analyst sentiment remains broadly positive: 20 analysts rate the stock Strong Buy or Buy, with a consensus price target of $144.89; several firms recently raised their targets.
• The rally came despite weak quarterly results, as Hut 8 reported a $1.27 per-share loss and $74.93 million in revenue, missing consensus estimates for both.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report)'s stock price traded up 8.8% during trading on Friday . The stock traded as high as $101.27 and last traded at $98.60. Approximately 5,674,212 shares changed hands during trading, an increase of 18% from the average session volume of 4,815,343 shares. The stock had previously closed at $90.60.

Analyst Ratings Changes

Several brokerages have issued reports on HUT. BTIG Research raised their price objective on shares of Hut 8 from $115.00 to $150.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Maxim Group upgraded Hut 8 to a "strong-buy" rating in a report on Wednesday, August 5th. Compass Point set a $195.00 price target on Hut 8 in a research note on Wednesday, July 22nd. Keefe, Bruyette & Woods dropped their price objective on Hut 8 from $157.00 to $154.00 and set an "outperform" rating for the company in a report on Thursday, August 6th. Finally, Piper Sandler upped their price objective on Hut 8 from $127.00 to $143.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Three equities 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. Based on data from MarketBeat, Hut 8 has an average rating of "Buy" and a consensus target price of $144.89.

Hut 8 Stock Up 8.8%

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 has a market cap of $12.15 billion, a P/E ratio of -18.09 and a beta of 4.51. The company's 50 day moving average price is $94.15 and its two-hundred day moving average price is $87.45.

Hut 8 (NASDAQ:HUT - Get Free Report) last announced 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). The firm had revenue of $74.93 million during the quarter, compared to the consensus estimate 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 last year, the company earned $1.18 EPS. As a group, research analysts expect that Hut 8 Corp. will post -2.85 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Victor Semah sold 10,000 shares of the firm's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total transaction of $1,250,000.00. Following the transaction, the insider owned 31,378 shares in the company, valued at approximately $3,922,250. This trade represents a 24.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Sean Glennan sold 6,445 shares of the firm's stock in a transaction 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 disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 10.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hut 8

Several large investors have recently modified their holdings of HUT. Canada Pension Plan Investment Board purchased a new stake in shares of Hut 8 during the second quarter worth about $45,301,000. Dimensional Fund Advisors LP raised its position in shares of Hut 8 by 11.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 207,619 shares of the company's stock valued at $9,717,000 after purchasing an additional 20,813 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of Hut 8 by 4,669,387.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 4,062,454 shares of the company's stock valued at $186,629,000 after purchasing an additional 4,062,367 shares during the last quarter. Handelsbanken Fonder AB acquired a new stake in Hut 8 in the 4th quarter worth approximately $1,153,000. Finally, Dayah Capital LLC boosted its stake in Hut 8 by 12.6% in the 1st quarter. Dayah Capital LLC now owns 217,920 shares of the company's stock worth $10,223,000 after purchasing an additional 24,456 shares in the last quarter. Institutional investors own 31.75% of the company's stock.

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.

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