Hut 8 (NASDAQ:HUT) Stock Price Down 13.2% After Analyst Downgrade

Hut 8 Corp. (NASDAQ:HUT) dropped 13.2% during trading on Friday after B. Riley Financial lowered their price target on the stock from $163.00 to $134.00. B. Riley Financial currently has a buy rating on the stock. Hut 8 traded as low as $58.11 and last traded at $57.6740. Approximately 2,641,903 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 4,930,533 shares. The stock had previously closed at $66.44.

Other equities analysts have also recently issued reports about the company. Wells Fargo & Company initiated coverage on Hut 8 in a research note on Thursday, September 17th. They set an “overweight” rating and a $175.00 price objective on the stock. Maxim Group raised Hut 8 to a “strong-buy” rating in a research report on Wednesday, August 5th. Weiss Ratings downgraded shares of Hut 8 from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, August 19th. Piper Sandler cut their price objective on shares of Hut 8 from $143.00 to $123.00 and set an “overweight” rating on the stock in a report on Tuesday, October 20th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Hut 8 from $157.00 to $154.00 and set an “outperform” rating for the company in a research note on Thursday, August 6th. Four research 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 assigned a Sell rating to the stock. Based on data from MarketBeat, Hut 8 presently has an average rating of “Buy” and a consensus price target of $146.77.

Insiders Place Their Bets

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of Hut 8 stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $78.76, for a total transaction of $507,608.20. Following the completion of the sale, 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 position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 business’s stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $100.00, for a total value of $2,000,000.00. Following the completion of the transaction, the director directly owned 89,408 shares of the company’s stock, valued at approximately $8,940,800. This trade represents a 18.28% decrease in their position. The SEC filing for this sale provides additional information. 10.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in HUT. Canada Pension Plan Investment Board acquired a new stake in Hut 8 during the 2nd quarter worth $45,301,000. Dimensional Fund Advisors LP grew its holdings 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 in the last quarter. Signal Advisors Wealth LLC purchased a new stake in Hut 8 in the 3rd quarter valued at $2,378,000. Dayah Capital LLC increased its stake in shares of Hut 8 by 12.6% in the 1st quarter. Dayah Capital LLC now owns 217,920 shares of the company’s stock worth $10,223,000 after acquiring an additional 24,456 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of Hut 8 in the 1st quarter worth $4,358,000. 31.75% of the stock is owned by institutional investors and hedge funds.

Hut 8 Stock Down 13.7%

The business’s 50 day simple moving average is $84.56 and its 200 day simple moving average is $82.34. The company has a market capitalization of $7.07 billion, a PE ratio of -10.53 and a beta of 4.62. The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35.

Hut 8 (NASDAQ:HUT) last issued 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 business had revenue of $74.93 million for 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 previous year, the business posted $1.18 earnings per share. As a group, analysts anticipate that Hut 8 Corp. will post -2.93 earnings per share for the current fiscal year.

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.