Hut 8 (NASDAQ:HUT) Shares Up 7.5% – Here’s What Happened

Hut 8 Corp. (NASDAQ:HUT) traded up 7.5% on Monday. The company traded as high as $63.88 and last traded at $65.8240. Approximately 1,187,375 shares traded hands during trading, a decline of 76% from the average session volume of 4,936,863 shares. The stock had previously closed at $61.23.

Analyst Ratings Changes

HUT has been the topic of several recent analyst reports. Wall Street Zen downgraded Hut 8 from a “sell” rating to a “strong sell” rating in a report on Saturday, August 1st. Compass Point set a $195.00 price target on shares of Hut 8 in a research note on Wednesday, July 22nd. Morgan Stanley lifted their price target on Hut 8 from $273.00 to $275.00 and gave the company an “overweight” rating in a report on Friday, October 9th. Weiss Ratings cut Hut 8 from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, August 19th. Finally, Needham & Company LLC lowered their target price on Hut 8 from $145.00 to $138.00 and set a “buy” rating for the company 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 issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $148.09.

Hut 8 Stock Performance

The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35. The firm has a fifty day simple moving average of $86.12 and a two-hundred day simple moving average of $95.22. The firm has a market cap of $8.00 billion, a price-to-earnings ratio of -11.86 and a beta of 4.62.

Hut 8 (NASDAQ:HUT) last released its quarterly earnings results on Wednesday, August 5th. 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 0.97%. 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 prior year, the business posted $1.18 EPS. On average, analysts expect that Hut 8 Corp. will post -2.93 EPS for the current year.

Insiders Place Their Bets

In other news, Director Mayo Shattuck, III sold 20,000 shares of the stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the transaction, the director directly owned 89,408 shares in the company, valued at $8,940,800. This represents a 18.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Sean Glennan sold 6,445 shares of the business’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $78.76, for a total value of $507,608.20. Following the transaction, the chief financial officer owned 17,978 shares in the company, valued at approximately $1,415,947.28. This represents a 26.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 10.40% of the company’s stock.

Hedge Funds Weigh In On Hut 8

Several institutional investors and hedge funds have recently added to or reduced their stakes in HUT. Canada Pension Plan Investment Board bought a new stake in Hut 8 in the second quarter worth approximately $45,301,000. Dimensional Fund Advisors LP grew its stake in Hut 8 by 11.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 207,619 shares of the company’s stock valued at $9,717,000 after buying an additional 20,813 shares during the last quarter. Signal Advisors Wealth LLC acquired a new stake in shares of Hut 8 in the third quarter valued at about $2,378,000. Dayah Capital LLC grew its holdings in Hut 8 by 12.6% in the 1st quarter. Dayah Capital LLC now owns 217,920 shares of the company’s stock valued at $10,223,000 after buying an additional 24,456 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Hut 8 during the first quarter worth approximately $4,358,000. 31.75% of the stock is currently owned by hedge funds and other institutional investors.

About Hut 8

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.