Hut 8 (NASDAQ:HUT) Shares Gap Down – Should You Sell?

Hut 8 Corp. (NASDAQ:HUT)’s share price gapped down before the market opened on Tuesday. The stock had previously closed at $85.24, but opened at $80.88. Hut 8 shares last traded at $81.7360, with a volume of 951,099 shares changing hands.

Analysts Set New Price Targets

Several research analysts have issued reports on HUT shares. UBS Group reissued a “buy” rating on shares of Hut 8 in a research report on Thursday. Loop Capital set a $226.00 price target on Hut 8 in a research note on Monday, June 22nd. Benchmark upped their price target on shares of Hut 8 from $165.00 to $195.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Piper Sandler increased their price objective on shares of Hut 8 from $127.00 to $143.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. Finally, Wells Fargo & Company started coverage on shares of Hut 8 in a research note on Thursday, September 17th. They issued an “overweight” rating and a $175.00 price objective on the stock. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $145.77.

Hut 8 Trading Down 3.8%

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 stock has a market capitalization of $10.11 billion, a PE ratio of -15.07 and a beta of 4.62. The stock has a 50-day moving average price of $89.53 and a two-hundred day moving average price of $93.81.

Hut 8 (NASDAQ:HUT) last announced its quarterly earnings data 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). The company had revenue of $74.93 million for the quarter, compared to the consensus estimate of $79.37 million. Hut 8 had a negative net margin of 188.59% and a negative return on equity of 0.97%. During the same quarter last year, the firm posted $1.18 earnings per share. As a group, equities analysts forecast that Hut 8 Corp. will post -2.98 earnings per share for the current year.

Insider Activity at Hut 8

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of Hut 8 stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $78.76, for a total transaction of $507,608.20. Following the transaction, the chief financial officer owned 17,978 shares of the company’s stock, valued at $1,415,947.28. The trade was a 26.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 company’s stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $100.00, for a total transaction of $2,000,000.00. Following the completion of the transaction, the director owned 89,408 shares of the company’s stock, valued at approximately $8,940,800. The trade was 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 insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Hut 8 in the 2nd quarter worth $1,093,294,000. Sachem Head Capital Management LP bought a new stake in Hut 8 during the fourth quarter valued at about $129,780,000. Avala Global LP bought a new stake in Hut 8 during the second quarter valued at about $144,602,000. Wellington Management Group LLP purchased a new position in shares of Hut 8 in the second quarter valued at about $97,949,000. Finally, Azora Capital LP lifted its position in shares of Hut 8 by 181.2% in the fourth quarter. Azora Capital LP now owns 690,492 shares of the company’s stock valued at $31,721,000 after acquiring an additional 444,949 shares in the last quarter. Hedge funds and other institutional investors own 31.75% of the company’s stock.

About Hut 8

Hut 8 Corp. (NASDAQ: HUT) is a North American energy infrastructure and digital asset mining company. Its operations include cryptocurrency mining, with a primary focus on Bitcoin, as well as the development and management of data center infrastructure supported by its energy resources.

The company owns and operates mining and data center facilities in the United States and Canada. In addition to self-mining digital assets, Hut 8 has pursued opportunities in high-performance computing and artificial intelligence infrastructure, using its power capacity, data center sites and related development capabilities to support evolving computing demand.

Hut 8 was originally established as Hut 8 Mining Corp., a Canadian cryptocurrency mining company.