Hut 8 (NASDAQ:HUT) Stock Jumps 12.5% – Time to Buy?

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

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Wall Street Zen cut shares of Hut 8 from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 1st. Wells Fargo & Company began coverage on shares of Hut 8 in a research report on Thursday, September 17th. They set an “overweight” rating and a $175.00 price objective for the company. Rosenblatt Securities reaffirmed a “buy” rating and issued a $124.00 target price on shares of Hut 8 in a report on Wednesday, August 5th. Rothschild & Co Redburn began coverage on Hut 8 in a report on Monday, September 21st. They set a “neutral” rating and a $96.00 price target for the company. Finally, Needham & Company LLC reduced their price target on Hut 8 from $145.00 to $138.00 and set a “buy” rating for the company in a research report on Wednesday, August 5th. Four analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $146.77.

Hut 8 Trading Up 16.2%

The firm has a market cap of $7.88 billion, a PE ratio of -11.70 and a beta of 4.62. The company has a quick ratio of 19.35, a current ratio of 19.35 and a debt-to-equity ratio of 4.22. The company’s 50 day moving average price is $83.46 and its two-hundred day moving average price is $82.30.

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 the consensus estimate of ($0.55) by ($0.72). The firm had revenue of $74.93 million during the quarter, compared to analysts’ expectations 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 quarter in the prior year, the company posted $1.18 earnings per share. As a group, sell-side analysts forecast that Hut 8 Corp. will post -2.93 EPS for the current year.

Insider Transactions at Hut 8

In other Hut 8 news, Director Mayo Shattuck, III sold 20,000 shares of the company’s stock in a transaction that occurred on 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 owned 89,408 shares in the company, valued at approximately $8,940,800. This represents a 18.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Sean Glennan sold 6,445 shares of the firm’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 completion of the transaction, the chief financial officer owned 17,978 shares of the company’s stock, valued at approximately $1,415,947.28. The trade was a 26.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 10.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of HUT. Arlington Trust Co LLC increased its stake in shares of Hut 8 by 175.0% during the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company’s stock worth $32,000 after purchasing an additional 175 shares in the last quarter. GK Wealth Management LLC acquired a new position in shares of Hut 8 during the 3rd quarter worth approximately $25,000. Parkside Financial Bank & Trust lifted its stake in Hut 8 by 258.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 380 shares of the company’s stock valued at $44,000 after buying an additional 274 shares in the last quarter. Heritage Family Offices LLP acquired a new stake in Hut 8 during the 3rd quarter valued at $35,000. Finally, CoreCap Advisors LLC increased its position in Hut 8 by 42.1% during the second quarter. CoreCap Advisors LLC now owns 540 shares of the company’s stock worth $62,000 after buying an additional 160 shares in the last quarter. Institutional investors and hedge funds 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.