EHang Holdings Limited Unsponsored ADR (NASDAQ:EH) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analyst sentiment is bearish: Eight brokerages give EHang an average “Reduce” rating, with three sells, four holds and one buy. The average 12-month price target is $7.18, while recent downgrades included Bank of America and Goldman Sachs.
• EHang shares remain under pressure: The stock opened at $4.53, near its 52-week low of $4.34, and trades below both its 50-day and 200-day moving averages.
• Financial performance remains weak, despite institutional interest: EHang reported a quarterly loss of $0.11 per share, a 74.74% negative net margin and $11.46 million in revenue; however, institutional investors and hedge funds own 94.03% of the stock.

Shares of EHang Holdings Limited Unsponsored ADR (NASDAQ:EH - Get Free Report) have been assigned an average recommendation of "Reduce" from the eight brokerages that are currently covering the company, Marketbeat.com reports. Three analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and one has given a buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $7.18.

Several analysts have recently issued reports on EH shares. Bank of America reissued an "underperform" rating and set a $5.40 price objective (down from $13.00) on shares of EHang in a research note on Wednesday, July 8th. Zacks Research raised EHang from a "strong sell" rating to a "hold" rating in a research report on Friday, September 4th. The Goldman Sachs Group downgraded EHang from a "buy" rating to a "neutral" rating and set a $7.30 price objective on the stock. in a report on Tuesday, July 14th. Morgan Stanley restated an "overweight" rating on shares of EHang in a report on Thursday, July 9th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $4.40 price objective (down from $9.70) on shares of EHang in a research note on Monday, July 6th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Squarepoint Ops LLC grew its stake in EHang by 110.1% during the second quarter. Squarepoint Ops LLC now owns 91,697 shares of the company's stock worth $601,000 after buying an additional 48,048 shares during the period. Headlands Technologies LLC raised its stake in shares of EHang by 26.7% in the 2nd quarter. Headlands Technologies LLC now owns 19,964 shares of the company's stock valued at $131,000 after acquiring an additional 4,209 shares during the period. Hennion & Walsh Asset Management Inc. raised its stake in shares of EHang by 24.4% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 55,305 shares of the company's stock valued at $362,000 after acquiring an additional 10,860 shares during the period. Bank of America Corp DE lifted its holdings in shares of EHang by 187.6% during the 1st quarter. Bank of America Corp DE now owns 30,312 shares of the company's stock valued at $294,000 after acquiring an additional 19,771 shares in the last quarter. Finally, Bessemer Group Inc. acquired a new position in shares of EHang during the 1st quarter valued at $51,000. 94.03% of the stock is owned by institutional investors and hedge funds.

EHang Trading Up 2.3%

Shares of EH stock opened at $4.53 on Friday. The firm has a market cap of $340.30 million, a P/E ratio of -7.31 and a beta of 1.17. EHang has a 1-year low of $4.34 and a 1-year high of $20.20. 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 firm's 50-day simple moving average is $5.22 and its 200-day simple moving average is $8.18.

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

EHang announced that its board has initiated a share buyback program on Monday, June 8th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

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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