Yahoo Finance Hut 8 Mining (TSE:HUT) delivers shareholders massive 100% CAGR over 3 years, surging 15% in the last week alone
Hut 8 Mining Corp. (TSE:HUT) shareholders have seen the share price descend 29% over the month. But over the last three years the stock has shone bright like a diamond. In fact, the share price has taken off in that time, up 698%. Arguably, the recent fall is to be expected after such a strong rise. The thing to consider is whether there is still too much elation around the company's prospects. Anyone who held for that rewarding ride would probably be keen to talk about it.
Since the stock has added CA$240m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
View our latest analysis for Hut 8 Mining
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Hut 8 Mining became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Hut 8 Mining's earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Hut 8 Mining shareholders have gained 242% (in total) over the last year. That gain actually surpasses the 100% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Hut 8 Mining you should be aware of, and 2 of them can't be ignored.
Hut 8 Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.