Hut 8 (NASDAQ:HUT) Shares Down 9.7% Following Weak Earnings

Hut 8 Corp. (NASDAQ:HUT)’s stock price traded down 9.7% during trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $100.85 and last traded at $101.16. 6,930,452 shares were traded during mid-day trading, an increase of 44% from the average session volume of 4,822,560 shares. The stock had previously closed at $112.08.

The company reported ($1.27) EPS for the quarter, missing the consensus estimate of ($0.55) by ($0.72). Hut 8 had a negative return on equity of 0.35% and a negative net margin of 109.77%.The firm had revenue of $72.66 million for the quarter, compared to the consensus estimate of $79.37 million. During the same quarter last year, the firm earned $1.18 EPS.

Analyst Ratings Changes

Several equities analysts have recently issued reports on HUT shares. Canaccord Genuity Group upped their price objective on shares of Hut 8 from $70.00 to $130.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Wall Street Zen downgraded shares of Hut 8 from a “sell” rating to a “strong sell” rating in a research report on Saturday. Morgan Stanley assumed coverage on shares of Hut 8 in a research report on Thursday, July 23rd. They set an “overweight” rating and a $263.00 target price on the stock. Weiss Ratings lowered shares of Hut 8 from a “sell (d+)” rating to a “sell (d-)” rating in a research note on Thursday, May 7th. Finally, Jefferies Financial Group started coverage on shares of Hut 8 in a research note on Thursday, May 14th. They set a “buy” rating and a $156.00 price objective for the company. Eighteen analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $138.85.

Insider Activity

In related news, Director Amy Marie Wilkinson sold 20,000 shares of the firm’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $100.78, for a total value of $2,015,600.00. Following the transaction, the director directly owned 262,136 shares of the company’s stock, valued at approximately $26,418,066.08. This trade represents a 7.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Victor Semah sold 10,000 shares of Hut 8 stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $125.00, for a total transaction of $1,250,000.00. Following 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 position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 102,206 shares of company stock valued at $11,376,242. 10.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Arlington Trust Co LLC lifted its holdings in shares of Hut 8 by 175.0% in the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company’s stock worth $32,000 after acquiring an additional 175 shares during the last quarter. Imprint Wealth LLC purchased a new stake in Hut 8 during the 4th quarter worth about $38,000. Russell Investments Group Ltd. boosted its holdings in Hut 8 by 235.8% in the second quarter. Russell Investments Group Ltd. now owns 2,448 shares of the company’s stock valued at $46,000 after purchasing an additional 1,719 shares in the last quarter. Harbor Investment Advisory LLC acquired a new position in shares of Hut 8 in the 1st quarter valued at $47,000. Finally, Activest Wealth Management purchased a new position in shares of Hut 8 during the fourth quarter worth about $49,000. 31.75% of the stock is currently owned by institutional investors and hedge funds.

Hut 8 Stock Performance

The firm has a 50-day simple moving average of $111.97 and a 200 day simple moving average of $81.33. The company has a market cap of $11.39 billion, a price-to-earnings ratio of -33.72 and a beta of 4.64. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.12.

Hut 8 Company Profile

Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high‐performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose‐built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low‐cost, low‐carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.