Hut 8 (NASDAQ:HUT) Shares Down 9.5% – Should You Sell?

Hut 8 Corp. (NASDAQ:HUT)’s stock price dropped 9.5% on Friday. The stock traded as low as $57.26 and last traded at $56.0610. 445,380 shares traded hands during trading, a decline of 91% from the average session volume of 5,060,241 shares. The stock had previously closed at $61.97.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Cantor Fitzgerald decreased their price target on shares of Hut 8 from $151.00 to $127.00 and set an “overweight” rating for the company in a research report on Thursday, November 5th. Jefferies Financial Group reduced their price objective on Hut 8 from $90.00 to $81.00 and set a “buy” rating on the stock in a research note on Tuesday. Benchmark boosted their price objective on Hut 8 from $165.00 to $195.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Wall Street Zen raised Hut 8 from a “strong sell” rating to a “sell” rating in a research report on Saturday, November 7th. Finally, B. Riley Financial reiterated a “buy” rating and issued a $132.00 target price (down from $134.00) on shares of Hut 8 in a research note on Friday, November 6th. Four 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 stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $134.05.

Hut 8 Price Performance

The stock has a market cap of $6.83 billion, a PE ratio of -11.58 and a beta of 4.53. The company has a current ratio of 9.48, a quick ratio of 9.48 and a debt-to-equity ratio of 3.84. The company’s 50 day moving average is $79.35 and its 200-day moving average is $82.22.

Hut 8 (NASDAQ:HUT) last announced its earnings results on Wednesday, November 4th. The company reported $0.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.72) by $1.70. Hut 8 had a negative return on equity of 9.68% and a negative net margin of 169.76%. The business had revenue of $71.07 million for the quarter, compared to analyst estimates of $75.78 million. As a group, sell-side analysts predict that Hut 8 Corp. will post -0.64 earnings per share for the current year.

Insider Buying and Selling at Hut 8

In other Hut 8 news, CFO Sean Glennan sold 6,445 shares of the 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 transaction, the chief financial officer directly owned 17,978 shares in the company, valued at $1,415,947.28. This represents a 26.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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 Hut 8 stock in a transaction dated Thursday, September 24th. The stock was 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 owned 89,408 shares of the company’s stock, valued at $8,940,800. This trade represents a 18.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 10.40% of the company’s stock.

Hedge Funds Weigh In On Hut 8

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Hut 8 during the 2nd quarter worth approximately $1,093,294,000. Avala Global LP bought a new stake in shares of Hut 8 in the 2nd quarter worth approximately $144,602,000. Voya Investment Management LLC boosted its position in Hut 8 by 424.9% during the 3rd quarter. Voya Investment Management LLC now owns 929,317 shares of the company’s stock valued at $80,014,000 after purchasing an additional 752,275 shares during the period. Wellington Management Group LLP acquired a new position in Hut 8 during the 2nd quarter valued at approximately $97,949,000. Finally, Montanova Capital LLC acquired a new position in Hut 8 during the 2nd quarter valued at approximately $77,348,000. 31.75% of the stock is owned by institutional investors.

Hut 8 Company Profile

Hut 8 is a North American energy and digital infrastructure company whose businesses include Bitcoin mining, data centers and computing services. It develops and operates facilities that support digital asset mining and other high-performance computing workloads. The company’s services include infrastructure and managed services for Bitcoin mining, as well as data center capacity and computing solutions. Hut 8 also works on developing and operating energy infrastructure to support its facilities.