Is Hut 8 Corp (NASDAQ: HUT) A Suitable Stock For New Investors Today?

Hut 8 Corp (NASDAQ:HUT) shares, rose in value, with the stock price up by 3.30% to the previous day’s close as strong demand from buyers drove the stock to $9.69.

Actively observing the price movement in the last trading, the stock closed the session at $9.38. Referring to stock’s 52-week performance, its high was $22.75, and the low was $6.18. On the whole, HUT has fluctuated by 15.91% over the past month.

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With the market capitalization of Hut 8 Corp currently standing at about $862.02 million, investors are eagerly awaiting this quarter’s results, scheduled for Mar 07, 2024 – Mar 11, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.25, which is expected to increase to -$0.35 for fiscal year $0.6 and then to about -$1.27 by fiscal year 2024. Data indicates that the EPS growth is expected to be 109.30% in 2024, while the next year’s EPS growth is forecast to be -311.70%.

Analysts have estimated the company’s revenue for the quarter at $23.66 million, with a low estimate of $20.15 million and a high estimate of $27.16 million. According to the average forecast, sales growth in current quarter could jump up 8.40%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2024, the company’s y-o-y revenues would reach $91.01 million, representing a decrease of -39.60% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that HUT’s technical picture suggests that short-term indicators denote the stock is a Hold on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a 50% Sell.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of HUT currently trading nearly 13.56% and 16.49% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 55.18, while the 7-day volatility ratio is showing 11.25% which for the 30-day chart, stands at 10.00%. Furthermore, Hut 8 Corp (HUT)’s beta value is 2.98, and its average true range (ATR) is 0.98.

A comparison of Hut 8 Corp (HUT) with its peers suggests the former has fared considerably weaker in the market. HUT showed an intraday change of 3.30% in last session, and over the past year, it grew by 4.76%%.

Data on historical trading for Hut 8 Corp (NASDAQ:HUT) indicates that the trading volumes over the past 10 days have averaged 5.19 million and over the past 3 months, they’ve averaged 5.63 million. According to company’s latest data on outstanding shares, there are 88.96 million shares outstanding.

Nearly 0.35% of Hut 8 Corp’s shares belong to company insiders and institutional investors own 9.64% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 9.56 million shares as on Mar 15, 2024, resulting in a short ratio of 1.9. According to the data, the short interest in Hut 8 Corp (HUT) stood at 10.75% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 7.73 million. The stock has fallen by -27.36% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the HUT stock heading into the next quarter.