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

Shares of Hut 8 Corp. (NASDAQ:HUT) gapped down before the market opened on Tuesday . The stock had previously closed at $39.26, but opened at $37.47. Hut 8 shares last traded at $37.7020, with a volume of 768,654 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. BTIG Research reaffirmed a “buy” rating and issued a $55.00 price objective on shares of Hut 8 in a research report on Thursday, November 6th. Weiss Ratings restated a “hold (c-)” rating on shares of Hut 8 in a research note on Thursday. Canaccord Genuity Group increased their price objective on Hut 8 from $36.00 to $54.00 and gave the company a “buy” rating in a report on Wednesday, November 5th. Rosenblatt Securities reissued a “buy” rating and issued a $65.00 price objective on shares of Hut 8 in a research report on Wednesday, November 5th. Finally, Wall Street Zen raised Hut 8 from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Hut 8 currently has an average rating of “Buy” and a consensus target price of $48.80.

Hut 8 Stock Performance

The stock has a market capitalization of $4.11 billion, a price-to-earnings ratio of -97.36 and a beta of 4.40. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.14. The firm has a 50-day moving average of $42.38 and a 200-day moving average of $28.34.

Hut 8 (NASDAQ:HUT) last posted its quarterly earnings results on Tuesday, November 4th. The company reported ($0.07) earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.09. The business had revenue of $80.72 million for the quarter, compared to the consensus estimate of $64.70 million. Hut 8 had a return on equity of 8.06% and a net margin of 115.39%. As a group, sell-side analysts predict that Hut 8 Corp. will post -0.53 earnings per share for the current year.

Insiders Place Their Bets

In other Hut 8 news, Director Joseph Flinn sold 8,500 shares of the firm’s stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $26.55, for a total transaction of $225,675.00. Following the completion of the transaction, the director directly owned 9,791 shares of the company’s stock, valued at approximately $259,951.05. This trade represents a 46.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 11.20% of the company’s stock.

Institutional Trading of Hut 8

Hedge funds and other institutional investors have recently made changes to their positions in the business. Victory Capital Management Inc. lifted its position in Hut 8 by 7.9% during the first quarter. Victory Capital Management Inc. now owns 11,127 shares of the company’s stock valued at $129,000 after purchasing an additional 819 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Hut 8 during the 1st quarter valued at about $1,104,000. US Bancorp DE lifted its holdings in shares of Hut 8 by 3,961.7% in the 1st quarter. US Bancorp DE now owns 3,290 shares of the company’s stock valued at $38,000 after buying an additional 3,209 shares during the period. Vanguard Group Inc. boosted its stake in shares of Hut 8 by 1.4% in the first quarter. Vanguard Group Inc. now owns 6,546,935 shares of the company’s stock worth $76,075,000 after buying an additional 87,550 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in Hut 8 by 2.7% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,039,169 shares of the company’s stock worth $12,075,000 after acquiring an additional 27,477 shares during the period. Institutional investors and hedge funds own 31.75% of the company’s stock.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other.