Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Sees Significant Growth in Short Interest

Key Points

• Innovative Solutions and Support, Inc. (NASDAQ:ISSC) reported a significant increase in short interest of 30.5% in August, totaling 845,000 shares and representing 5.5% of the company's total shares.
• Insider trading activity revealed that major shareholder Christopher Harborne sold 145,009 shares for approximately $1.99 million, reducing their stake by 8.39%.
• Shares of ISSC recently traded down 2.9% to $10.90, with the company's latest earnings report showing $24.15 million in revenue, surpassing analyst estimates.

Innovative Solutions and Support, Inc. (NASDAQ:ISSC - Get Free Report) saw a large increase in short interest in the month of August. As of August 31st, there was short interest totaling 845,000 shares, an increase of 30.5% from the August 15th total of 647,600 shares. Approximately 5.5% of the shares of the company are sold short. Based on an average trading volume of 622,200 shares, the days-to-cover ratio is currently 1.4 days. Based on an average trading volume of 622,200 shares, the days-to-cover ratio is currently 1.4 days. Approximately 5.5% of the shares of the company are sold short.

Insider Activity

In related news, major shareholder Christopher Harborne sold 145,009 shares of the business's stock in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $13.69, for a total value of $1,985,173.21. Following the transaction, the insider directly owned 1,583,411 shares of the company's stock, valued at approximately $21,676,896.59. The trade was a 8.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last ninety days, insiders sold 457,244 shares of company stock worth $6,054,098. Insiders own 4.40% of the company's stock.

Institutional Trading of Innovative Solutions and Support

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Geode Capital Management LLC grew its position in Innovative Solutions and Support by 0.6% in the 2nd quarter. Geode Capital Management LLC now owns 123,258 shares of the aerospace company's stock valued at $1,711,000 after acquiring an additional 725 shares during the last quarter. Isthmus Partners LLC grew its position in Innovative Solutions and Support by 0.8% in the 1st quarter. Isthmus Partners LLC now owns 192,048 shares of the aerospace company's stock valued at $1,208,000 after acquiring an additional 1,588 shares during the last quarter. J.W. Cole Advisors Inc. grew its position in Innovative Solutions and Support by 12.4% in the 2nd quarter. J.W. Cole Advisors Inc. now owns 15,360 shares of the aerospace company's stock valued at $213,000 after acquiring an additional 1,700 shares during the last quarter. HighTower Advisors LLC grew its position in Innovative Solutions and Support by 4.0% in the 1st quarter. HighTower Advisors LLC now owns 48,987 shares of the aerospace company's stock valued at $308,000 after acquiring an additional 1,880 shares during the last quarter. Finally, American Century Companies Inc. grew its position in Innovative Solutions and Support by 21.9% in the 2nd quarter. American Century Companies Inc. now owns 12,386 shares of the aerospace company's stock valued at $172,000 after acquiring an additional 2,228 shares during the last quarter. Hedge funds and other institutional investors own 28.53% of the company's stock.

Innovative Solutions and Support Trading Down 0.9%

NASDAQ:ISSC traded down $0.10 during midday trading on Friday, hitting $11.40. 406,248 shares of the company traded hands, compared to its average volume of 503,432. The firm's fifty day moving average is $14.21 and its 200-day moving average is $10.86. Innovative Solutions and Support has a 12-month low of $5.30 and a 12-month high of $20.00. The firm has a market capitalization of $200.98 million, a P/E ratio of 17.27 and a beta of 0.80. The company has a current ratio of 3.53, a quick ratio of 1.69 and a debt-to-equity ratio of 0.41.

Innovative Solutions and Support (NASDAQ:ISSC - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The aerospace company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.02). Innovative Solutions and Support had a net margin of 15.10% and a return on equity of 23.86%. The company had revenue of $24.15 million for the quarter, compared to analysts' expectations of $19.20 million.

Analysts Set New Price Targets

Separately, Wall Street Zen cut Innovative Solutions and Support from a "buy" rating to a "hold" rating in a report on Sunday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, Based on data from MarketBeat, the company presently has an average rating of "Strong Buy".

Innovative Solutions and Support Company Profile

Innovative Solutions and Support, Inc, a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft.