Hut 8 (NASDAQ:HUT) Shares Gap Up – Time to Buy?

Hut 8 Corp. (NASDAQ:HUT) shares gapped up before the market opened on Wednesday. The stock had previously closed at $69.04, but opened at $73.20. Hut 8 shares last traded at $68.5510, with a volume of 861,541 shares changing hands.

Wall Street Analysts Forecast Growth

HUT has been the subject of a number of research reports. Benchmark boosted their target price on shares of Hut 8 from $165.00 to $195.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. B. Riley Financial upped their price target on shares of Hut 8 from $130.00 to $163.00 and gave the stock a “buy” rating in a research report on Monday, August 3rd. Morgan Stanley raised their price target on shares of Hut 8 from $273.00 to $275.00 and gave the company an “overweight” rating in a research note on Friday, October 9th. Roth Capital reiterated a “buy” rating and issued a $108.00 price objective on shares of Hut 8 in a report on Wednesday, October 7th. Finally, Wells Fargo & Company began coverage on Hut 8 in a research note on Thursday, September 17th. They set an “overweight” rating and a $175.00 price objective for the company. Four research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $148.09.

Hut 8 Trading Down 10.6%

The firm has a market capitalization of $7.88 billion, a price-to-earnings ratio of -11.74 and a beta of 4.62. The company has a fifty day moving average price of $86.61 and a two-hundred day moving average price of $95.14. The company has a current ratio of 19.35, a quick ratio of 19.35 and a debt-to-equity ratio of 4.22.

Hut 8 (NASDAQ:HUT) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($1.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.55) by ($0.72). Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. The company had revenue of $74.93 million during the quarter, compared to analysts’ expectations of $79.37 million. During the same quarter last year, the company earned $1.18 earnings per share. As a group, research analysts forecast that Hut 8 Corp. will post -2.93 earnings per share for the current fiscal year.

Insider Buying and Selling at Hut 8

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of the firm’s 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 sale, the chief financial officer directly owned 17,978 shares of the company’s stock, valued at $1,415,947.28. This trade represents a 26.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Mayo Shattuck, III sold 20,000 shares of the firm’s stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $100.00, for a total value of $2,000,000.00. Following the completion of the sale, the director directly owned 89,408 shares of the company’s stock, valued at $8,940,800. This trade represents a 18.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 10.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hut 8

Several hedge funds and other institutional investors have recently bought and sold shares of HUT. BlackRock Inc. acquired a new position in Hut 8 in the 2nd quarter valued at about $1,093,294,000. Avala Global LP acquired a new stake in shares of Hut 8 during the 2nd quarter worth approximately $144,602,000. Wellington Management Group LLP acquired a new stake in shares of Hut 8 during the 2nd quarter worth approximately $97,949,000. Montanova Capital LLC acquired a new stake in shares of Hut 8 during the 2nd quarter worth approximately $77,348,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Hut 8 during the 2nd quarter valued at approximately $56,364,000. 31.75% of the stock is currently owned by institutional investors and hedge funds.

Hut 8 Company Profile

Hut 8 Corp. is a North American energy infrastructure and computing company whose business includes digital asset mining, high-performance computing and data center operations. The company develops and manages power and infrastructure assets intended to support energy-intensive computing applications.

Hut 8’s activities have historically centered on Bitcoin mining, supported by company-operated data centers and specialized mining equipment. It also provides infrastructure for emerging computing applications, including artificial intelligence and other high-performance computing workloads, as it seeks to expand beyond cryptocurrency mining.

The company was established in Canada and expanded its operations in the United States through its combination with U.S.