EHang (NASDAQ:EH) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded EHang from “sell” to “strong sell,” while the broader analyst consensus remains “Reduce” with a $7.18 price target.
• EHang shares opened at $4.53, near their 12-month low of $4.34 and well below the 200-day moving average of $8.18; the stock has a market capitalization of approximately $340 million.
• The company reported a quarterly loss of $0.11 per share on $11.46 million in revenue, with a negative net margin of 74.74%; analysts expect a full-year loss of $0.79 per share.

EHang (NASDAQ:EH - Get Free Report) was downgraded by analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other equities analysts have also recently weighed in on the stock. Zacks Research upgraded shares of EHang from a "strong sell" rating to a "hold" rating in a research report on Friday, September 4th. Morgan Stanley reissued an "overweight" rating on shares of EHang in a research note on Thursday, July 9th. Weiss Ratings downgraded shares of EHang from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday, July 14th. Bank of America restated an "underperform" rating and set a $5.40 price target (down from $13.00) on shares of EHang in a research report on Wednesday, July 8th. Finally, The Goldman Sachs Group lowered shares of EHang from a "buy" rating to a "neutral" rating and set a $7.30 price target on the stock. in a research note on Tuesday, July 14th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, EHang presently has a consensus rating of "Reduce" and a consensus price target of $7.18.

EHang Stock Up 2.3%

EHang stock opened at $4.53 on Friday. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.84 and a quick ratio of 1.65. The stock has a market capitalization of $340.30 million, a PE ratio of -7.31 and a beta of 1.17. The business has a 50 day simple moving average of $5.22 and a 200-day simple moving average of $8.18. EHang has a 12 month low of $4.34 and a 12 month high of $20.20.

EHang (NASDAQ:EH - Get Free Report) last announced its earnings results on Friday, August 14th. The company reported ($0.11) earnings per share (EPS) for the quarter. EHang had a negative net margin of 74.74% and a negative return on equity of 32.73%. The business had revenue of $11.46 million for the quarter. On average, analysts anticipate that EHang will post -0.79 EPS for the current fiscal year.

EHang declared that its board has approved a stock buyback plan on Monday, June 8th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On EHang

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in shares of EHang by 2.8% in the third quarter. Vanguard Group Inc. now owns 2,022,710 shares of the company's stock valued at $37,562,000 after buying an additional 55,913 shares during the last quarter. FIL Ltd boosted its position in EHang by 2.9% during the fourth quarter. FIL Ltd now owns 1,402,092 shares of the company's stock worth $18,480,000 after acquiring an additional 39,256 shares during the last quarter. State Street Corp grew its stake in EHang by 4.7% during the 4th quarter. State Street Corp now owns 1,082,433 shares of the company's stock valued at $14,266,000 after acquiring an additional 48,356 shares in the last quarter. Norges Bank purchased a new stake in EHang during the 4th quarter valued at about $7,131,000. Finally, Tiger Pacific Capital LP acquired a new stake in EHang in the 3rd quarter valued at about $8,948,000. Institutional investors and hedge funds own 94.03% of the company's stock.

EHang Company Profile

EHang Holdings Limited is a China-based technology company specializing in the development and manufacturing of autonomous aerial vehicles (AAVs) for passenger transportation, logistics, and other commercial applications. Established in 2014 and listed on NASDAQ under the ticker EH in 2019, EHang focuses on delivering turnkey solutions that integrate hardware, flight control systems and a cloud-based operating platform. Its flagship products include the EH216 series passenger AAV and the Falcon series unmanned aerial vehicles, designed to support urban air mobility, aerial filming, emergency response and short-range cargo delivery.

The company’s business model encompasses research and development, manufacturing, certification support, and operations services.

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