Aurora Innovation (NASDAQ:AUR) Shares Gap Down - Should You Sell?

Key Points

• Aurora Innovation shares gapped down from a prior close of $6.97 to open at $6.48, later trading near $6.05 on heavy volume.
• Analyst sentiment is mixed: seven analysts rate the stock Buy, two Hold and two Sell, producing an overall “Hold” rating and a consensus price target of $12.22.
• The company missed quarterly EPS expectations, reporting a $0.14 loss per share versus the projected $0.12 loss, while revenue reached $2 million. Insiders sold 4.75 million shares worth approximately $33.7 million over the past 90 days.

Shares of Aurora Innovation, Inc. (NASDAQ:AUR - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $6.97, but opened at $6.48. Aurora Innovation shares last traded at $6.0530, with a volume of 11,883,530 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. TD Cowen lifted their target price on shares of Aurora Innovation from $4.70 to $7.00 and gave the stock a "hold" rating in a research report on Thursday, May 7th. Needham & Company LLC reaffirmed a "buy" rating and issued a $13.00 price objective on shares of Aurora Innovation in a report on Thursday, May 7th. Cantor Fitzgerald reissued an "overweight" rating and issued a $12.00 target price on shares of Aurora Innovation in a report on Thursday, July 23rd. Northland Securities assumed coverage on Aurora Innovation in a research report on Friday, May 29th. They issued an "outperform" rating and a $11.00 target price on the stock. Finally, Wall Street Zen cut Aurora Innovation from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Seven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Aurora Innovation currently has an average rating of "Hold" and a consensus price target of $12.22.

Aurora Innovation Stock Performance

The business's 50-day moving average price is $6.43 and its 200-day moving average price is $5.65. The stock has a market cap of $12.12 billion, a P/E ratio of -12.95 and a beta of 2.64.

Aurora Innovation (NASDAQ:AUR - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.02). The company had revenue of $2.00 million during the quarter, compared to analysts' expectations of $1.66 million. Aurora Innovation had a negative return on equity of 43.94% and a negative net margin of 18,000.00%.The company's revenue for the quarter was up 100.0% on a year-over-year basis. During the same quarter last year, the company earned ($0.11) earnings per share. As a group, equities research analysts expect that Aurora Innovation, Inc. will post -0.48 earnings per share for the current year.

Insider Activity

In related news, Director Reid Hoffman sold 1,202,354 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $7.27, for a total value of $8,741,113.58. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Michelangelo Volpi sold 1,854,322 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $7.05, for a total transaction of $13,072,970.10. The SEC filing for this sale provides additional information. Insiders have sold a total of 4,750,425 shares of company stock valued at $33,668,718 in the last ninety days. Corporate insiders own 8.52% of the company's stock.

Hedge Funds Weigh In On Aurora Innovation

Several large investors have recently added to or reduced their stakes in AUR. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Aurora Innovation in the fourth quarter worth $35,000. Danske Bank A S bought a new stake in shares of Aurora Innovation during the 3rd quarter valued at $36,000. Eurizon Capital SGR S.p.A. purchased a new position in shares of Aurora Innovation during the 4th quarter valued at $39,000. Stonebridge Financial Group LLC MO purchased a new position in shares of Aurora Innovation during the 4th quarter valued at $40,000. Finally, Equitable Holdings Inc. bought a new position in Aurora Innovation in the 4th quarter worth $41,000. Hedge funds and other institutional investors own 44.71% of the company's stock.

Aurora Innovation Company Profile

Aurora Innovation, Inc is a technology company specializing in the development of self-driving vehicle systems for both passenger and commercial applications. Headquartered in Mountain View, California, Aurora has built an end-to-end platform—known as the Aurora Driver—that integrates proprietary software, machine learning algorithms and a suite of sensors (LiDAR, radar and cameras) to enable vehicles to operate safely and efficiently in diverse driving environments.

The company's core business revolves around designing, testing and deploying its autonomy stack on vehicles from established automotive and transportation partners.

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