Hut 8 (NASDAQ:HUT) Stock Price Up 12.5% – What’s Next?

Hut 8 Corp. (NASDAQ:HUT) shares were up 12.5% during mid-day trading on Tuesday. The stock traded as high as $61.74 and last traded at $61.8620. 988,584 shares were traded during trading, a decline of 80% from the average session volume of 4,930,978 shares. The stock had previously closed at $55.01.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on HUT. Wall Street Zen lowered Hut 8 from a “sell” rating to a “strong sell” rating in a report on Saturday, August 1st. Rothschild & Co Redburn began coverage on shares of Hut 8 in a research note on Monday, September 21st. They issued a “neutral” rating and a $96.00 target price for the company. Compass Point set a $195.00 target price on shares of Hut 8 in a research report on Wednesday, July 22nd. Wells Fargo & Company began coverage on shares of Hut 8 in a research note on Thursday, September 17th. They set an “overweight” rating and a $175.00 price target on the stock. Finally, Maxim Group upgraded shares of Hut 8 to a “strong-buy” rating in a report on Wednesday, August 5th. Four 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 stock. According to data from MarketBeat.com, Hut 8 currently has a consensus rating of “Buy” and an average price target of $146.77.

Hut 8 Price Performance

The company has a 50-day moving average of $83.46 and a 200 day moving average of $82.30. 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 market cap of $7.88 billion, a P/E ratio of -11.70 and a beta of 4.62.

Hut 8 (NASDAQ:HUT) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($1.27) EPS for the quarter, missing analysts’ consensus estimates of ($0.55) by ($0.72). The business had revenue of $74.93 million during the quarter, compared to analyst estimates of $79.37 million. Hut 8 had a negative return on equity of 0.97% and a negative net margin of 188.59%. During the same period in the prior year, the firm posted $1.18 EPS. On average, sell-side analysts anticipate that Hut 8 Corp. will post -2.93 EPS for the current year.

Insider Activity

In related news, CFO Sean Glennan sold 6,445 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $78.76, for a total value of $507,608.20. Following the sale, the chief financial officer directly owned 17,978 shares in the company, 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 SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Mayo A. Shattuck III sold 20,000 shares of the stock in a transaction dated 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 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. The SEC filing for this sale provides additional information. 10.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of Hut 8 during the second quarter worth $1,093,294,000. Avala Global LP bought a new stake in Hut 8 in the 2nd quarter valued at $144,602,000. Wellington Management Group LLP bought a new stake in Hut 8 in the 2nd quarter valued at $97,949,000. Montanova Capital LLC bought a new stake in Hut 8 in the 2nd quarter valued at $77,348,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in Hut 8 in the 2nd quarter worth $56,364,000. Institutional investors own 31.75% of the company’s stock.

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.