Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Short Interest Up 37.9% in April

Key Points

• Short interest in Innovative Solutions and Support surged 37.9% in April to 691,727 shares, about 4.1% of shares short, with a short‑interest ratio of 1.3 days based on average volume.
• Shares fell ~4.3% to $20.07 midday; the company recently beat expectations with $0.25 EPS vs. $0.10 estimated and $21.81M revenue, reporting strong profitability (ROE 30.44%, net margin 21.02%).
• Several firms (Weiss, Wall Street Zen, JonesTrading) have upgraded ISSC and MarketBeat shows a consensus rating of Strong Buy, while institutional investors now own about 28.5% of the stock after recent inflows.

Innovative Solutions and Support, Inc. (NASDAQ:ISSC - Get Free Report) was the recipient of a significant increase in short interest in the month of April. As of April 15th, there was short interest totaling 691,727 shares, an increase of 37.9% from the March 31st total of 501,688 shares. Based on an average trading volume of 544,613 shares, the short-interest ratio is presently 1.3 days. Approximately 4.1% of the company's shares are short sold.

Innovative Solutions and Support Stock Down 4.3%

Shares of ISSC traded down $0.90 during midday trading on Tuesday, reaching $20.07. 356,346 shares of the company were exchanged, compared to its average volume of 512,031. The stock has a 50-day moving average price of $24.77 and a 200-day moving average price of $18.17. The company has a market cap of $356.84 million, a price-to-earnings ratio of 19.11 and a beta of 0.70. Innovative Solutions and Support has a 1-year low of $6.63 and a 1-year high of $30.94. The company has a current ratio of 2.96, a quick ratio of 1.53 and a debt-to-equity ratio of 0.31.

Innovative Solutions and Support (NASDAQ:ISSC - Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The aerospace company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.10 by $0.15. The company had revenue of $21.81 million for the quarter, compared to analysts' expectations of $18.82 million. Innovative Solutions and Support had a return on equity of 30.44% and a net margin of 21.02%. Research analysts expect that Innovative Solutions and Support will post 0.92 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on ISSC. Weiss Ratings raised Innovative Solutions and Support from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, February 23rd. Wall Street Zen raised Innovative Solutions and Support from a "hold" rating to a "buy" rating in a research report on Saturday, March 28th. Finally, JonesTrading raised Innovative Solutions and Support to a "strong-buy" rating in a research report on Monday, January 5th. Four equities research analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company's stock. Based on data from MarketBeat, Innovative Solutions and Support currently has an average rating of "Strong Buy" and a consensus price target of $16.25.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Sierra Summit Advisors LLC acquired a new position in shares of Innovative Solutions and Support in the first quarter worth about $999,000. Y Intercept Hong Kong Ltd acquired a new position in shares of Innovative Solutions and Support in the first quarter worth about $1,918,000. Inspire Investing LLC acquired a new position in shares of Innovative Solutions and Support in the first quarter worth about $515,000. Ritholtz Wealth Management lifted its stake in shares of Innovative Solutions and Support by 10.0% in the first quarter. Ritholtz Wealth Management now owns 15,919 shares of the aerospace company's stock worth $327,000 after acquiring an additional 1,452 shares in the last quarter. Finally, XTX Topco Ltd lifted its stake in shares of Innovative Solutions and Support by 26.9% in the fourth quarter. XTX Topco Ltd now owns 40,166 shares of the aerospace company's stock worth $761,000 after acquiring an additional 8,508 shares in the last quarter. Institutional investors and hedge funds own 28.53% of the company's stock.

Innovative Solutions and Support Company Profile

Innovative Solutions and Support, Inc NASDAQ: ISSC is a provider of technology solutions and mission support services to U.S. federal government agencies, with a focus on defense, intelligence, and national security programs. The company delivers integrated program management, systems engineering, and advanced IT infrastructure support designed to enhance operational readiness and maintain secure, scalable environments for mission-critical operations.

Its core service offerings include systems integration, custom software development, data analytics, cybersecurity, and logistics management.

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