NN (NASDAQ:NNBR) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• NN reported Q earnings of $0.02 EPS, beating the consensus by $0.07 and generating $118.45M in revenue versus $106.59M expected, but the company remains unprofitable with a -8.05% net margin and negative ROE.
• Major insiders including John Frederick Barrett and Corre Partners sold large blocks (555,305 shares each), and insiders offloaded 3.27M shares worth $7.86M in the last quarter, reducing insider ownership to 19.6%.
• Analysts hold a consensus "Reduce" rating with an average price target of $3.00 while NNBR trades around $2.52 (market cap ~$126M) and carries a high debt-to-equity ratio of 4.52.

NN (NASDAQ:NNBR - Get Free Report) posted its quarterly earnings data on Wednesday. The industrial products company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.07, FiscalAI reports. The company had revenue of $118.45 million for the quarter, compared to the consensus estimate of $106.59 million. NN had a negative net margin of 8.05% and a negative return on equity of 0.98%.

NN Price Performance

Shares of NNBR stock traded up $0.05 during trading hours on Wednesday, reaching $2.52. 1,767,951 shares of the company were exchanged, compared to its average volume of 1,521,767. NN has a fifty-two week low of $1.10 and a fifty-two week high of $2.88. The stock's fifty day moving average is $1.72 and its two-hundred day moving average is $1.56. The company has a market cap of $126.48 million, a price-to-earnings ratio of -2.36, a P/E/G ratio of 0.48 and a beta of 2.54. The company has a debt-to-equity ratio of 4.52, a current ratio of 1.83 and a quick ratio of 1.09.

Insider Buying and Selling

In other news, major shareholder John Frederick Barrett sold 555,305 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $2.69, for a total transaction of $1,493,770.45. Following the transaction, the insider directly owned 4,717,079 shares in the company, valued at approximately $12,688,942.51. This represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Corre Partners Management, Llc sold 555,305 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $2.69, for a total transaction of $1,493,770.45. Following the transaction, the insider owned 412,427 shares in the company, valued at $1,109,428.63. The trade was a 57.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,273,832 shares of company stock worth $7,859,198 over the last quarter. 19.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On NN

A number of large investors have recently modified their holdings of NNBR. Nantahala Capital Management LLC lifted its position in shares of NN by 69.4% during the second quarter. Nantahala Capital Management LLC now owns 2,441,416 shares of the industrial products company's stock worth $5,127,000 after purchasing an additional 1,000,000 shares in the last quarter. Paradigm Capital Management Inc. NY lifted its position in shares of NN by 21.3% during the second quarter. Paradigm Capital Management Inc. NY now owns 2,758,252 shares of the industrial products company's stock worth $5,792,000 after purchasing an additional 483,952 shares in the last quarter. UBS Group AG lifted its position in shares of NN by 15,147.1% during the third quarter. UBS Group AG now owns 279,632 shares of the industrial products company's stock worth $576,000 after purchasing an additional 277,798 shares in the last quarter. Renaissance Technologies LLC lifted its position in shares of NN by 291.0% during the fourth quarter. Renaissance Technologies LLC now owns 367,500 shares of the industrial products company's stock worth $470,000 after purchasing an additional 273,500 shares in the last quarter. Finally, First Manhattan CO. LLC. lifted its position in shares of NN by 8.2% during the fourth quarter. First Manhattan CO. LLC. now owns 3,003,800 shares of the industrial products company's stock worth $3,845,000 after purchasing an additional 228,800 shares in the last quarter. 53.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of NN in a research note on Tuesday, April 21st. B. Riley Financial lowered their target price on shares of NN from $4.00 to $3.00 and set a "buy" rating on the stock in a research note on Friday, March 6th. Finally, Zacks Research cut shares of NN from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 11th. One research analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $3.00.

About NN

NN, Inc NASDAQ: NNBR is a diversified industrial manufacturing company specializing in engineered metal components, powder metal parts and friction materials. Through its subsidiaries, the company develops and produces precision-rolled products for powertrain and chassis applications, engineered friction products for brake and transmission systems, and various metal powders used in automotive, industrial and energy markets. Its offerings span a wide range of component sizes and complexity, from thin‐gauge strips for hybrid and electric vehicle applications to high‐volume sintered parts for commercial and consumer products.

The company's operations are organized into three business segments.

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