Hut 8 Target of Unusually Large Options Trading (NASDAQ:HUT)

Key Points

• Hut 8 Corp. experienced a significant increase in options trading, with investors purchasing 35,063 call options, a 45% rise from the average volume.
• The company's stock rose $0.84 during midday trading to reach $35.03, with a 1-year high and low of $35.65 and $10.04, respectively.
• Equities analysts have generally upgraded their price targets for Hut 8, with estimates reaching as high as $36.00, indicating a positive outlook for the stock.

Hut 8 Corp. (NASDAQ:HUT - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Stock traders purchased 35,063 call options on the stock. This represents an increase of approximately 45% compared to the average volume of 24,158 call options.

Hut 8 Trading Up 0.9%

Shares of HUT traded up $0.36 during mid-day trading on Thursday, hitting $38.15. 5,789,885 shares of the company traded hands, compared to its average volume of 5,678,821. Hut 8 has a 1-year low of $10.04 and a 1-year high of $39.47. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.81 and a current ratio of 1.81. The business has a 50 day moving average of $24.12 and a 200 day moving average of $18.04.

Hut 8 (NASDAQ:HUT - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.14) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.15) by $0.01. Hut 8 had a net margin of 112.81% and a return on equity of 8.73%. The firm had revenue of $41.72 million for the quarter, compared to the consensus estimate of $49.10 million. Equities analysts predict that Hut 8 will post -0.53 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have commented on the stock. JMP Securities assumed coverage on shares of Hut 8 in a research note on Thursday, May 22nd. They set a "market outperform" rating and a $25.00 price objective for the company. Citizens Jmp raised shares of Hut 8 to a "strong-buy" rating and set a $25.00 target price for the company in a research note on Thursday, May 22nd. BTIG Research boosted their target price on shares of Hut 8 from $25.00 to $33.00 and gave the company a "buy" rating in a research note on Tuesday, September 9th. Maxim Group boosted their target price on shares of Hut 8 from $23.00 to $30.00 and gave the company a "buy" rating in a research note on Monday, August 11th. Finally, Citigroup started coverage on shares of Hut 8 in a research note on Thursday, May 22nd. They set an "outperform" rating for the company. Three investment analysts have rated the stock with a Strong Buy rating and sixteen have assigned a Buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $29.88.

Insider Activity at Hut 8

In related news, Director Joseph Flinn sold 8,500 shares of the business's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $26.55, for a total value of $225,675.00. Following the sale, the director owned 9,791 shares in the company, valued at approximately $259,951.05. The trade was a 46.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Sean Joseph Glennan sold 6,060 shares of the business's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $22.09, for a total transaction of $133,865.40. Following the completion of the sale, the chief financial officer owned 6,295 shares in the company, valued at $139,056.55. This represents a 49.05% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 27,129 shares of company stock worth $574,044. Company insiders own 11.20% of the company's stock.

Hedge Funds Weigh In On Hut 8

Hedge funds and other institutional investors have recently bought and sold shares of the business. Teacher Retirement System of Texas acquired a new position in Hut 8 in the 1st quarter worth approximately $143,000. Baird Financial Group Inc. acquired a new position in Hut 8 in the 1st quarter worth approximately $360,000. Bank of America Corp DE boosted its position in Hut 8 by 16.8% in the 4th quarter. Bank of America Corp DE now owns 146,500 shares of the company's stock worth $3,002,000 after purchasing an additional 21,058 shares in the last quarter. Nuveen LLC purchased a new stake in Hut 8 in the 1st quarter worth approximately $2,508,000. Finally, SG Americas Securities LLC boosted its position in Hut 8 by 481.9% in the 1st quarter. SG Americas Securities LLC now owns 40,615 shares of the company's stock worth $472,000 after purchasing an additional 33,635 shares in the last quarter. Institutional investors and hedge funds own 31.75% of the company's stock.

Hut 8 Company Profile

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other.