Investors Purchase High Volume of EHang Call Options (NASDAQ:EH)

Key Points

• Unusual options activity drove attention to EHang, with investors buying 23,229 call options on Monday — about 1,049% above the average volume.
• Shares of EHang edged up to $5.17, but the stock remains far below its 52-week high of $20.45 and below both its 50-day and 200-day moving averages.
• The company also announced a share repurchase program, while analysts remain cautious overall with a consensus rating of “Reduce” and an average target price of $7.18.

EHang Holdings Limited Unsponsored ADR (NASDAQ:EH - Get Free Report) was the target of some unusual options trading on Monday. Investors bought 23,229 call options on the stock. This represents an increase of 1,049% compared to the average volume of 2,022 call options.

EHang Price Performance

Shares of NASDAQ EH traded up $0.05 during midday trading on Monday, reaching $5.17. The company's stock had a trading volume of 421,353 shares, compared to its average volume of 837,031. EHang has a one year low of $4.99 and a one year high of $20.45. The company has a 50 day moving average price of $7.68 and a 200 day moving average price of $10.40. The company has a market cap of $388.37 million, a price-to-earnings ratio of -9.57 and a beta of 1.13. The company has a current ratio of 1.87, a quick ratio of 1.70 and a debt-to-equity ratio of 0.10.

EHang announced that its Board of Directors has initiated a share repurchase program on Monday, June 8th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On EHang

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. grew its stake in EHang by 11.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 125,781 shares of the company's stock valued at $2,628,000 after acquiring an additional 13,376 shares in the last quarter. JPMorgan Chase & Co. lifted its stake in shares of EHang by 10.1% in the 2nd quarter. JPMorgan Chase & Co. now owns 7,292 shares of the company's stock valued at $127,000 after purchasing an additional 671 shares during the last quarter. Legal & General Group Plc lifted its stake in shares of EHang by 171.7% in the 2nd quarter. Legal & General Group Plc now owns 3,380 shares of the company's stock valued at $59,000 after purchasing an additional 2,136 shares during the last quarter. Hsbc Holdings PLC bought a new stake in EHang in the second quarter worth $300,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of EHang in the second quarter valued at about $369,000. Institutional investors and hedge funds own 94.03% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Zacks Research lowered shares of EHang from a "hold" rating to a "strong sell" rating in a report on Monday, July 13th. Bank of America reaffirmed an "underperform" rating and issued a $5.40 price objective (down from $13.00) on shares of EHang in a report on Wednesday, July 8th. UBS Group lowered EHang from a "buy" rating to a "neutral" rating and set a $11.10 target price for the company. in a report on Thursday, June 4th. Morgan Stanley restated an "overweight" rating on shares of EHang in a research report on Thursday, July 9th. Finally, Wall Street Zen lowered EHang from a "hold" rating to a "sell" rating in a report on Saturday, June 13th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $7.18.

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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