Key Takeaways
- Hut 8 stock is down 11% in the past week after third-quarter revenue of $71.1 million missed estimates.
- Both AI data center campuses are on schedule, and management expects to fund them without new shares.
- Its $250 million buyback averaged about $75 a share, well above where the stock trades now.
- Even the lowest of the week’s new analyst targets sits well above the stock, a buying chance for patient investors.
Hut 8 (HUT) stock is down 11% in the past week. Most of the drop came after its third-quarter report before Wednesday’s open.
A miss where it matters least
Revenue came in at $71.07 million, short of the $77.22 million analysts expected. Nearly all of it, $68.4 million, came from bitcoin mining and cloud services, including a traditional cloud business Hut 8 has now sold. None of it came from the AI data center leases, which haven’t started yet. That flips once the leases switch on. Consensus puts revenue at $582 million in 2027 and $1.3 billion in 2028:
Both campuses are still on schedule
Going into the report, the question was whether both campuses were still on track. CEO Asher Genoot said they are. River Bend’s first data hall is due in the second quarter of 2027. Beacon Point’s second phase follows a year later. And “we expect these projects to be funded entirely at the project level, without requiring equity issuance or recourse debt at the parent,” he said. Hut 8 ended September with about $6.6 billion of cash and investments, restricted cash included. Its $1.07 billion credit line sat undrawn.
The buyback already looks pricey
Hut 8 sold about 3,102 bitcoin to buy back 3,338,479 shares for $250 million, or about $75 each. The stock closed Friday about 30% below that. I’d call that a costly trade for now. But the buyback didn’t touch the campus funding. And with the authorization raised to $1.0 billion, any shares Hut 8 buys from here come much cheaper.
TIKR tracks 23 analysts on Hut 8. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Hut 8, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Hut 8’s Analyst Ratings
Wall Street still sees plenty of upside
Analysts cut their targets all week. KBW went to $92 from $154, Northland to $75 from $120 and B. Riley to $132 from $134. All three kept bullish ratings. The 22 analysts covering Hut 8 have a mean target of $143. At Friday’s close, the stock traded at 15x forward sales, against a 24x average over the past year and 42x at its June peak:
Bottom line: I’d load up. Northland’s $75 is still 42% above Friday’s close, and the leases behind the bull case haven’t changed. Genoot called River Bend’s first data hall the first obligation that comes due, though. Any slip there would send targets lower again.
So what is Hut 8 stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Hut 8 could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
