Hut 8 Target of Unusually High 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 target of some unusual options trading activity on Tuesday. Stock investors acquired 35,063 call options on the stock. This represents an increase of 45% compared to the average volume of 24,158 call options.

Insider Activity

In other news, CFO Sean Joseph Glennan sold 6,060 shares of Hut 8 stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $22.09, for a total transaction of $133,865.40. Following the sale, the chief financial officer directly owned 6,295 shares in the company, valued at approximately $139,056.55. The trade was a 49.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph Flinn sold 8,500 shares of Hut 8 stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $26.55, for a total transaction of $225,675.00. Following the sale, the director owned 9,791 shares in the company, valued at approximately $259,951.05. This trade represents a 46.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 27,129 shares of company stock worth $574,044. 11.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Nisa Investment Advisors LLC grew its holdings in Hut 8 by 116.4% during the second quarter. Nisa Investment Advisors LLC now owns 1,515 shares of the company's stock valued at $28,000 after purchasing an additional 815 shares during the period. Advisors Asset Management Inc. grew its holdings in Hut 8 by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 1,613 shares of the company's stock valued at $30,000 after purchasing an additional 655 shares during the period. State of Wyoming acquired a new position in Hut 8 during the first quarter valued at approximately $32,000. US Bancorp DE grew its holdings in Hut 8 by 3,961.7% during the first quarter. US Bancorp DE now owns 3,290 shares of the company's stock valued at $38,000 after purchasing an additional 3,209 shares during the period. Finally, Russell Investments Group Ltd. grew its holdings in Hut 8 by 235.8% during the second quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company's stock valued at $46,000 after purchasing an additional 1,719 shares during the period. Institutional investors and hedge funds own 31.75% of the company's stock.

Hut 8 Price Performance

Shares of HUT traded down $1.14 on Friday, reaching $36.24. 9,560,519 shares of the company's stock were exchanged, compared to its average volume of 5,863,710. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.19. The business has a 50 day moving average price of $24.71 and a two-hundred day moving average price of $18.38. Hut 8 has a 12 month low of $10.04 and a 12 month high of $39.47.

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

Analyst Upgrades and Downgrades

HUT has been the topic of several recent research reports. Northland Securities set a $26.00 target price on shares of Hut 8 in a research report on Friday, July 11th. Maxim Group lifted their price target on shares of Hut 8 from $23.00 to $30.00 and gave the company a "buy" rating in a report on Monday, August 11th. Rosenblatt Securities cut their price target on shares of Hut 8 from $24.00 to $23.00 and set a "buy" rating for the company in a report on Monday, August 11th. BTIG Research lifted their price target on shares of Hut 8 from $25.00 to $33.00 and gave the company a "buy" rating in a report on Tuesday, September 9th. Finally, Canaccord Genuity Group lifted their price target on shares of Hut 8 from $32.00 to $36.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Three investment analysts have rated the stock with a Strong Buy rating and sixteen have given a Buy rating to the company. According to data from MarketBeat, Hut 8 currently has an average rating of "Buy" and an average price target of $29.88.

About Hut 8

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.