EHang Target of Unusually Large Options Trading (NASDAQ:EH)

Key Points

• Unusual options activity: Traders purchased 7,505 put options on EHang, 222% above the average volume of 2,332 contracts, signaling heightened bearish or hedging interest.
• Institutional ownership remains high: Hedge funds and other institutions own 94.03% of EHang, with several investors—including SteelPeak Wealth and Bank of America—substantially increasing their positions.
• Weak financial outlook: EHang shares rose 1.2% to $4.58, near their 52-week low, while the company reported a quarterly loss, negative margins and return on equity. Analysts have a consensus “Reduce” rating and an average price target of $6.70.

EHang Holdings Limited Unsponsored ADR (NASDAQ:EH - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock traders bought 7,505 put options on the company. This represents an increase of 222% compared to the average volume of 2,332 put options.

Institutional Trading of EHang

A number of hedge funds and other institutional investors have recently modified their holdings of EH. Fideuram Asset Management Ireland dac acquired a new position in EHang during the fourth quarter valued at approximately $2,591,000. SteelPeak Wealth LLC increased its position in shares of EHang by 452.6% during the 1st quarter. SteelPeak Wealth LLC now owns 73,838 shares of the company's stock worth $717,000 after purchasing an additional 60,476 shares during the last quarter. Squarepoint Ops LLC raised its stake in shares of EHang by 110.1% during the 2nd quarter. Squarepoint Ops LLC now owns 91,697 shares of the company's stock worth $601,000 after purchasing an additional 48,048 shares in the last quarter. Hennion & Walsh Asset Management Inc. raised its stake in shares of EHang by 24.4% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 55,305 shares of the company's stock worth $362,000 after purchasing an additional 10,860 shares in the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of EHang by 187.6% in the 1st quarter. Bank of America Corp DE now owns 30,312 shares of the company's stock valued at $294,000 after buying an additional 19,771 shares during the last quarter. Institutional investors and hedge funds own 94.03% of the company's stock.

EHang Stock Up 1.2%

Shares of EHang stock traded up $0.06 during trading on Wednesday, reaching $4.58. The stock had a trading volume of 379,075 shares, compared to its average volume of 805,982. The company has a current ratio of 1.84, a quick ratio of 1.65 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $343.67 million, a price-to-earnings ratio of -7.38 and a beta of 1.17. EHang has a 52 week low of $4.31 and a 52 week high of $20.20. The stock has a fifty day moving average price of $5.17 and a two-hundred day moving average price of $8.03.

EHang (NASDAQ:EH - Get Free Report) last released its earnings results on Friday, August 14th. The company reported ($0.11) EPS for the quarter. EHang had a negative net margin of 74.74% and a negative return on equity of 32.73%. The firm had revenue of $11.46 million during the quarter. Sell-side analysts predict that EHang will post -0.79 EPS for the current fiscal year.

EHang declared that its board has approved a share buyback program on Monday, June 8th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research firms have commented on EH. UBS Group lowered EHang from a "buy" rating to a "neutral" rating and set a $11.10 price objective on the stock. in a research note on Thursday, June 4th. Dbs Bank lowered shares of EHang from a "buy" rating to a "hold" rating in a research note on Friday, August 28th. Zacks Research upgraded shares of EHang from a "strong sell" rating to a "hold" rating in a research report on Friday, September 4th. Wall Street Zen downgraded EHang from a "sell" rating to a "strong sell" rating in a research note on Saturday. Finally, Morgan Stanley set a $5.30 price target on shares of EHang and gave the company an "equal weight" rating in a research report on Tuesday. Five investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $6.70.

About EHang

EHang Holdings Limited is a China-based technology company focused on autonomous aerial vehicles (AAVs) and urban air mobility. The company develops aircraft, autonomous flight systems, and supporting infrastructure intended to enable pilotless passenger transportation and other low-altitude aerial services.

Its product portfolio includes the EH216 series of electric vertical takeoff and landing (eVTOL) aircraft, including the EH216-S passenger-carrying model. EHang also develops AAV applications for logistics, medical and emergency response, firefighting, aerial media, and other specialized uses, along with command-and-control systems and related operational services.

Founded in 2014 and headquartered in Guangzhou, China, EHang has conducted demonstration flights, commercial-operation trials, and partnerships in China and selected international markets.

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