Hut 8 (NASDAQ:HUT) Stock Price Down 2.3% After Analyst Downgrade

Hut 8 Corp. (NASDAQ:HUT) shares were down 2.3% during trading on Thursday after Keefe, Bruyette & Woods lowered their price target on the stock from $157.00 to $154.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Hut 8 traded as low as $88.01 and last traded at $90.65. 3,021,825 shares traded hands during mid-day trading, a decline of 37% from the average daily volume of 4,808,030 shares. The stock had previously closed at $92.76.

Other research analysts have also issued research reports about the company. Canaccord Genuity Group upped their price target on Hut 8 from $70.00 to $130.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Benchmark boosted their price objective 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. Piper Sandler increased their target price on Hut 8 from $93.00 to $127.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Needham & Company LLC reduced their price target on shares of Hut 8 from $145.00 to $138.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Citigroup reiterated an “outperform” rating on shares of Hut 8 in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Buy” and an average price target of $139.15.

Insider Buying and Selling

In other news, Director Joseph Flinn sold 30,500 shares of Hut 8 stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $116.21, for a total transaction of $3,544,405.00. Following the transaction, the director directly owned 18,238 shares of the company’s stock, valued at $2,119,437.98. The trade was a 62.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Amy Marie Wilkinson sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $100.78, for a total transaction of $2,015,600.00. Following the completion of the transaction, the director owned 262,136 shares of the company’s stock, valued at approximately $26,418,066.08. The trade was a 7.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 102,206 shares of company stock valued at $11,376,242 in the last 90 days. Corporate insiders own 10.40% of the company’s stock.

Hut 8 News Summary

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

• Positive Sentiment: AI infrastructure pivot attracts investor interest: Hut 8 is repositioning itself as a power-first, AI-focused infrastructure platform, with an 8.7-gigawatt development pipeline and Beacon Point lease targeting $9.8 billion in base-term value. The strategy is intended to generate more stable, contracted cash flows than bitcoin mining. Why Hut 8 Is Up After Pivoting Toward AI Data Center Infrastructure Hut 8 Outlines 8.7 GW Pipeline
• Positive Sentiment: Analyst support remains strong: Maxim Group upgraded HUT to “strong buy.” Keefe, Bruyette & Woods maintained an “outperform” rating despite lowering its price target to $154 from $157, implying substantial upside based on the cited reference price. Needham also reiterated “buy,” while Rosenblatt maintained its “buy” rating with a $124 target.
• Positive Sentiment: Funding reduces dilution concerns: Management highlighted $7.5 billion of non-recourse, investment-grade project financing, which could fund large campus developments without issuing equity or adding parent-level debt. Adjusted EBITDA improved and gross margin expanded to 64% despite the weak quarter.
• Neutral Sentiment: Heavy call-option activity: High-volume purchases of HUT call options suggest speculative bullish positioning, although options activity can increase volatility and does not guarantee sustained buying in the shares. Stock Traders Purchase High Volume of Call Options on Hut 8
• Negative Sentiment: Q2 earnings missed expectations: Hut 8 reported a loss of $1.27 per share versus the $0.55 consensus loss, while revenue of $72.66 million fell short of the $79.37 million estimate. The company also posted a sharply negative net margin, reinforcing concerns about near-term profitability and contributing to the stock’s decline. Hut 8 Stock Price Down on Disappointing Earnings

Hedge Funds Weigh In On Hut 8

Several institutional investors have recently added to or reduced their stakes in HUT. Arlington Trust Co LLC grew its holdings in shares of Hut 8 by 175.0% in the second quarter. Arlington Trust Co LLC now owns 275 shares of the company’s stock valued at $32,000 after purchasing an additional 175 shares in the last quarter. Imprint Wealth LLC purchased a new stake in Hut 8 in the 4th quarter worth about $38,000. Russell Investments Group Ltd. raised its holdings in shares of Hut 8 by 235.8% in the second quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company’s stock worth $46,000 after buying an additional 1,719 shares during the period. Harbor Investment Advisory LLC purchased a new stake in Hut 8 in the first quarter worth $47,000. Finally, Activest Wealth Management bought a new stake in Hut 8 during the 4th quarter valued at about $49,000. Hedge funds and other institutional investors own 31.75% of the company’s stock.

Hut 8 Stock Down 2.3%

The stock has a market cap of $10.21 billion, a P/E ratio of -16.63 and a beta of 4.64. The company’s 50 day moving average price is $111.24 and its two-hundred day moving average price is $81.88. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.12.

Hut 8 (NASDAQ:HUT) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($1.27) EPS for the quarter, missing the consensus estimate of ($0.55) by ($0.72). Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.98%. The firm had revenue of $72.66 million for the quarter, compared to analysts’ expectations of $79.37 million. During the same quarter in the prior year, the business posted $1.18 EPS. As a group, research analysts expect that Hut 8 Corp. will post -2.54 earnings per share for the current year.

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.