Hut 8 (NASDAQ:HUT) Shares Down 8.8% – What’s Next?

Hut 8 Corp. (NASDAQ:HUT)’s share price traded down 8.8% during mid-day trading on Friday . The company traded as low as $78.55 and last traded at $79.42. 4,428,746 shares traded hands during trading, a decline of 8% from the average session volume of 4,835,735 shares. The stock had previously closed at $87.13.

Wall Street Analyst Weigh In

Several research firms have weighed in on HUT. Weiss Ratings cut shares of Hut 8 from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, August 19th. Morgan Stanley initiated coverage on Hut 8 in a report on Thursday, July 23rd. They set an “overweight” rating and a $263.00 target price on the stock. Northland Securities set a $120.00 price objective on shares of Hut 8 in a research report on Thursday, May 7th. Piper Sandler raised their target price on shares of Hut 8 from $127.00 to $143.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Finally, Freedom Broker upgraded Hut 8 to a “strong-buy” rating in a report on Tuesday, August 18th. Three analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $144.89.

Hut 8 Stock Down 8.8%

The firm has a market cap of $9.79 billion, a price-to-earnings ratio of -14.57 and a beta of 4.64. The company has a debt-to-equity ratio of 4.22, a quick ratio of 19.35 and a current ratio of 19.35. The firm has a fifty day simple moving average of $99.78 and a 200-day simple moving average of $85.07.

Hut 8 (NASDAQ:HUT) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($1.27) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.72). The company had revenue of $74.93 million during the quarter, compared to the consensus estimate of $79.37 million. Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. During the same period in the prior year, the company earned $1.18 earnings per share. As a group, sell-side analysts expect that Hut 8 Corp. will post -2.85 EPS for the current year.

Insider Buying and Selling at Hut 8

In other Hut 8 news, CFO Sean Joseph Glennan sold 6,445 shares of Hut 8 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 transaction, the chief financial officer directly owned 17,978 shares of the company’s stock, valued at $1,415,947.28. The trade was a 26.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Victor Semah sold 10,000 shares of the business’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $125.00, for a total value of $1,250,000.00. Following the completion of the transaction, the insider directly owned 31,378 shares of the company’s stock, valued at approximately $3,922,250. This trade represents a 24.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 54,664 shares of company stock valued at $6,212,160 in the last quarter. Company insiders own 10.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its position in shares of Hut 8 by 11,436.2% during the 2nd quarter. California State Teachers Retirement System now owns 13,256,088 shares of the company’s stock worth $1,530,349,000 after buying an additional 13,141,179 shares during the last quarter. BlackRock Inc. acquired a new stake in Hut 8 in the second quarter valued at $1,093,294,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Hut 8 by 4,669,387.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 4,062,454 shares of the company’s stock worth $186,629,000 after acquiring an additional 4,062,367 shares during the period. SRS Investment Management LLC acquired a new stake in shares of Hut 8 during the fourth quarter worth $131,838,000. Finally, Sachem Head Capital Management LP acquired a new stake in Hut 8 during the 4th quarter worth about $129,780,000. 31.75% of the stock is currently owned by institutional investors and hedge funds.

About Hut 8

Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high?performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose?built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low?cost, low?carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.