Hut 8 (NASDAQ:HUT) Rating Increased to Strong-Buy at UBS Group

UBS Group upgraded shares of Hut 8 (NASDAQ:HUT) to a strong-buy rating in a research report sent to investors on Wednesday morning,Zacks reports.

Several other research analysts have also recently weighed in on the stock. B. Riley Financial increased their price target on shares of Hut 8 from $130.00 to $163.00 and gave the company a “buy” rating in a report on Monday, August 3rd. Keefe, Bruyette & Woods decreased their target price on Hut 8 from $157.00 to $154.00 and set an “outperform” rating on the stock in a research report on Thursday, August 6th. Weiss Ratings lowered Hut 8 from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, August 19th. Rosenblatt Securities reiterated a “buy” rating and set a $124.00 target price on shares of Hut 8 in a research note on Wednesday, August 5th. Finally, Compass Point set a $195.00 price target on Hut 8 in a report on Wednesday, July 22nd. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $143.95.

Hut 8 Trading Down 3.9%

Shares of NASDAQ:HUT opened at $102.46 on Wednesday. The stock has a market capitalization of $12.63 billion, a PE ratio of -18.80 and a beta of 4.51. The company’s 50-day moving average price is $93.27 and its two-hundred day moving average price is $90.18. The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35. Hut 8 has a one year low of $31.67 and a one year high of $140.80.

Hut 8 (NASDAQ:HUT) last issued its earnings results on Wednesday, August 5th. The company reported ($1.27) earnings per share for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $74.93 million for the quarter, compared to analyst estimates of $79.37 million. During the same quarter in the previous year, the firm posted $1.18 earnings per share. On average, equities analysts forecast that Hut 8 will post -2.85 EPS for the current fiscal year.

Insider Activity at Hut 8

In other news, CFO Sean Glennan sold 6,445 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $78.76, for a total transaction of $507,608.20. Following the transaction, the chief financial officer directly owned 17,978 shares of the company’s stock, valued at approximately $1,415,947.28. This trade represents a 26.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On Hut 8

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Hut 8 during the 2nd quarter valued at $1,093,294,000. Sachem Head Capital Management LP bought a new position in shares of Hut 8 in the fourth quarter worth $129,780,000. Geode Capital Management LLC raised its stake in Hut 8 by 3.2% in the fourth quarter. Geode Capital Management LLC now owns 2,593,916 shares of the company’s stock valued at $119,181,000 after purchasing an additional 79,591 shares in the last quarter. Oasis Management Co Ltd. raised its stake in Hut 8 by 231.5% in the fourth quarter. Oasis Management Co Ltd. now owns 2,307,683 shares of the company’s stock valued at $106,015,000 after purchasing an additional 1,611,653 shares in the last quarter. Finally, Avala Global LP bought a new stake in Hut 8 during the second quarter worth about $144,602,000. Institutional investors and hedge funds own 31.75% of the company’s stock.

Key Stories Impacting Hut 8

Here are the key news stories impacting Hut 8 this week:

• Positive Sentiment: Hut 8 won bidding for Poolin’s Texas data centers with a $140 million offer. The acquisition could expand Hut 8’s power and data-center footprint and strengthen its position as it shifts beyond cryptocurrency mining toward AI and high-performance computing. However, investors may also assess the capital requirements and integration risks. The Block article
• Positive Sentiment: UBS initiated coverage of HUT with a Buy rating, along with favorable ratings for other bitcoin miners pursuing AI-related data-center opportunities. The coverage may improve institutional sentiment and supports the view that Hut 8’s infrastructure assets could have value beyond mining. UBS coverage article
• Positive Sentiment: Technical commentary described a bullish breakout above $101.83, with the prior high near $140.80 identified as a potential upside target if momentum continues. FXEmpire forecast
• Neutral Sentiment: Hut 8’s lean management structure and elimination of many traditional executive titles could reduce bureaucracy, though the long-term effect on execution and governance remains unclear. Wall Street Journal article
• Negative Sentiment: Rothschild & Co. Redburn initiated coverage with a Neutral rating and a $96 price target, below the recent trading level. That cautious view may weigh on the stock, particularly given Hut 8’s recent earnings miss and continued losses.
• Negative Sentiment: Local officials in West Feliciana Parish addressed community concerns about a proposed Hut 8 data center, highlighting potential permitting, environmental, infrastructure, or community-relations hurdles for future expansion. WBRZ article

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.