Hut 8 (NASDAQ:HUT) Upgraded to “Strong-Buy” at UBS Group

Hut 8 (NASDAQ:HUT) was upgraded by analysts at UBS Group to a “strong-buy” rating in a research note issued to investors on Wednesday, Zacks reports.

A number of other equities analysts have also recently commented on HUT. Loop Capital set a $226.00 price target on Hut 8 in a report on Monday, June 22nd. Morgan Stanley assumed coverage on Hut 8 in a research note on Thursday, July 23rd. They issued an “overweight” rating and a $263.00 price objective on the stock. Wall Street Zen cut Hut 8 from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 1st. Wells Fargo & Company started coverage on Hut 8 in a research note on Thursday, September 17th. They set an “overweight” rating and a $175.00 target price for the company. Finally, Keefe, Bruyette & Woods decreased their target price on Hut 8 from $157.00 to $154.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $143.95.

Hut 8 Stock Performance

Shares of HUT stock opened at $102.46 on Wednesday. The stock has a market cap of $12.63 billion, a P/E ratio of -18.80 and a beta of 4.51. The company has a debt-to-equity ratio of 4.22, a current ratio of 19.35 and a quick ratio of 19.35. The company has a fifty day moving average price of $93.27 and a two-hundred day moving average price of $90.18. Hut 8 has a one year low of $31.67 and a one year high of $140.80.

Hut 8 (NASDAQ:HUT) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($1.27) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.72). The firm 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 quarter in the prior year, the firm earned $1.18 earnings per share. As a group, equities analysts predict that Hut 8 will post -2.85 EPS for the current year.

Insider Activity

In other news, CFO Sean Glennan sold 6,445 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $78.76, for a total value of $507,608.20. Following the transaction, the chief financial officer owned 17,978 shares of the company’s stock, valued at approximately $1,415,947.28. This represents a 26.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 10.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Hut 8

Several hedge funds have recently added to or reduced their stakes in HUT. Arlington Trust Co LLC boosted its stake in Hut 8 by 175.0% in the 2nd quarter. Arlington Trust Co LLC now owns 275 shares of the company’s stock valued at $32,000 after purchasing an additional 175 shares during the period. Parkside Financial Bank & Trust grew its holdings in Hut 8 by 258.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 380 shares of the company’s stock valued at $44,000 after buying an additional 274 shares in the last quarter. Harbor Investment Advisory LLC bought a new position in Hut 8 during the 1st quarter worth $47,000. CoreCap Advisors LLC lifted its holdings in shares of Hut 8 by 42.1% during the second quarter. CoreCap Advisors LLC now owns 540 shares of the company’s stock worth $62,000 after buying an additional 160 shares in the last quarter. Finally, PNC Financial Services Group Inc. lifted its holdings in shares of Hut 8 by 27.6% during the first quarter. PNC Financial Services Group Inc. now owns 2,194 shares of the company’s stock worth $103,000 after buying an additional 474 shares in the last quarter. 31.75% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Hut 8

Here are the key news stories impacting Hut 8 this week:

• Positive Sentiment: Hut 8 won bidding for Poolin’s Texas data centers with a $140 million offer. The acquisition could expand Hut 8’s power and data-center footprint and strengthen its position as it shifts beyond cryptocurrency mining toward AI and high-performance computing. However, investors may also assess the capital requirements and integration risks. The Block article
• Positive Sentiment: UBS initiated coverage of HUT with a Buy rating, along with favorable ratings for other bitcoin miners pursuing AI-related data-center opportunities. The coverage may improve institutional sentiment and supports the view that Hut 8’s infrastructure assets could have value beyond mining. UBS coverage article
• Positive Sentiment: Technical commentary described a bullish breakout above $101.83, with the prior high near $140.80 identified as a potential upside target if momentum continues. FXEmpire forecast
• Neutral Sentiment: Hut 8’s lean management structure and elimination of many traditional executive titles could reduce bureaucracy, though the long-term effect on execution and governance remains unclear. Wall Street Journal article
• Negative Sentiment: Rothschild & Co. Redburn initiated coverage with a Neutral rating and a $96 price target, below the recent trading level. That cautious view may weigh on the stock, particularly given Hut 8’s recent earnings miss and continued losses.
• Negative Sentiment: Local officials in West Feliciana Parish addressed community concerns about a proposed Hut 8 data center, highlighting potential permitting, environmental, infrastructure, or community-relations hurdles for future expansion. WBRZ article

Hut 8 Company Profile

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.