EquipmentShare.com Target of Unusually High Options Trading (NASDAQ:EQPT)

Key Points

• Unusual options activity hit EquipmentShare.com, with investors buying 2,954 put options on Wednesday—about 98% above the stock’s average daily put volume.
• The company also reported strong quarterly results, posting EPS of -$0.11 versus expectations of -$0.26 and revenue of $989 million, up 38.1% year over year.
• Management and insiders have shown confidence: the board approved a $500 million share buyback, and multiple directors recently bought shares; analysts currently rate the stock Hold on average with a $36.33 price target.

EquipmentShare.com Inc (NASDAQ:EQPT - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Investors bought 2,954 put options on the stock. This is an increase of 98% compared to the average daily volume of 1,492 put options.

EquipmentShare.com Stock Performance

NASDAQ EQPT traded down $0.30 on Wednesday, reaching $17.24. 3,279,792 shares of the company's stock traded hands, compared to its average volume of 2,086,806. The stock has a market cap of $4.35 billion and a price-to-earnings ratio of 132.69. The business has a 50 day moving average of $20.51. EquipmentShare.com has a fifty-two week low of $15.71 and a fifty-two week high of $35.50. The company has a debt-to-equity ratio of 2.71, a quick ratio of 1.90 and a current ratio of 2.47.

EquipmentShare.com (NASDAQ:EQPT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The company reported ($0.11) EPS for the quarter, beating the consensus estimate of ($0.26) by $0.15. The business had revenue of $989.00 million during the quarter. The business's revenue for the quarter was up 38.1% compared to the same quarter last year. As a group, equities research analysts anticipate that EquipmentShare.com will post 0.46 EPS for the current fiscal year.

EquipmentShare.com declared that its Board of Directors has initiated a stock buyback plan on Friday, July 10th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to buy up to 12.4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Activity at EquipmentShare.com

In related news, Director W Bryan Hill bought 21,803 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was bought at an average cost of $22.89 per share, for a total transaction of $499,070.67. Following the purchase, the director directly owned 35,794 shares of the company's stock, valued at approximately $819,324.66. This trade represents a 155.84% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Naveen Bhatia bought 10,000 shares of the company's stock in a transaction on Friday, May 15th. The shares were bought at an average cost of $24.22 per share, for a total transaction of $242,200.00. Following the transaction, the director owned 312,000 shares in the company, valued at $7,556,640. The trade was a 3.31% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 81,803 shares of company stock valued at $1,797,271 in the last three months. 32.81% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

EQPT has been the topic of a number of research analyst reports. BNP Paribas Exane started coverage on shares of EquipmentShare.com in a report on Monday, June 29th. They set a "neutral" rating and a $22.00 price objective on the stock. Wells Fargo & Company reduced their target price on EquipmentShare.com from $32.00 to $25.00 and set an "overweight" rating for the company in a research note on Tuesday, July 14th. Citigroup lifted their price target on EquipmentShare.com from $18.00 to $19.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Weiss Ratings downgraded EquipmentShare.com from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, May 20th. Finally, Citizens Jmp restated a "market outperform" rating and issued a $42.00 price objective on shares of EquipmentShare.com in a research note on Monday, June 22nd. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $36.33.

EquipmentShare.com Company Profile

EquipmentShare.com Inc provides integrated, full-service construction solutions across equipment rental, sales and technology. EquipmentShare.com Inc is based in Columbia, Missouri.

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