Hut 8 (NASDAQ:HUT) Stock Price Down 4.4% – Here’s Why

Hut 8 Corp. (NASDAQ:HUT)’s stock price dropped 4.4% during mid-day trading on Tuesday . The stock traded as low as $85.71 and last traded at $87.09. 3,810,933 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 4,820,905 shares. The stock had previously closed at $91.13.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Piper Sandler lifted their price objective on shares of Hut 8 from $127.00 to $143.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. Wall Street Zen lowered shares of Hut 8 from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 1st. Keefe, Bruyette & Woods lowered their target price on shares of Hut 8 from $157.00 to $154.00 and set an “outperform” rating on the stock in a research note on Thursday, August 6th. Weiss Ratings downgraded shares of Hut 8 from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, August 19th. Finally, Compass Point set a $195.00 price target on shares of Hut 8 in a research report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $144.89.

Hut 8 Trading Down 4.4%

The company has a fifty day simple moving average of $93.92 and a 200-day simple moving average of $87.99. The company has a current ratio of 19.35, a quick ratio of 19.35 and a debt-to-equity ratio of 4.22. The stock has a market cap of $10.73 billion, a price-to-earnings ratio of -15.98 and a beta of 4.51.

Hut 8 (NASDAQ:HUT) last issued 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). The firm had revenue of $74.93 million during the quarter, compared to analysts’ expectations 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 company posted $1.18 EPS. On average, research analysts forecast that Hut 8 Corp. will post -2.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Victor Semah sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $125.00, for a total transaction of $1,250,000.00. Following the completion of the sale, the insider directly owned 31,378 shares in the company, valued at approximately $3,922,250. This trade represents a 24.17% decrease in their ownership of the stock. The transaction 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 Hut 8 stock in a transaction 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 sale, the chief financial officer directly owned 17,978 shares of the company’s stock, valued at $1,415,947.28. This trade 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. 10.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hut 8

Large investors have recently bought and sold shares of the business. BlackRock Inc. acquired 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 shares of Hut 8 in the 4th quarter worth approximately $129,780,000. Oasis Management Co Ltd. lifted its position in shares of Hut 8 by 231.5% in the 4th quarter. Oasis Management Co Ltd. now owns 2,307,683 shares of the company’s stock worth $106,015,000 after acquiring an additional 1,611,653 shares during the period. Avala Global LP bought a new position in Hut 8 in the second quarter worth $144,602,000. Finally, Wellington Management Group LLP acquired a new stake in shares of Hut 8 during the 2nd quarter valued at about $97,949,000. 31.75% of the stock is currently owned by institutional investors.

About Hut 8

Hut 8 Corp. (NASDAQ:HUT) is a North American energy infrastructure and digital asset mining company. The company develops and operates data centers, power-generation resources and other infrastructure that support energy-intensive computing applications, including Bitcoin mining.

Hut 8 also provides services related to digital asset mining and data center operations, while pursuing opportunities in high-performance computing and artificial intelligence infrastructure. Its business is supported by a portfolio of power and data center sites in the United States and Canada.

The company was formed through the combination of Canadian Bitcoin miner Hut 8 Mining Corp.