Investors Buy Large Volume of Call Options on EHang (NASDAQ:EH)

Key Points

• Call-option activity surged: Traders bought 3,686 EHang call options, roughly 55% above the typical daily volume of 2,373 contracts.
• Institutional ownership is high: Institutional investors and hedge funds own 94.03% of EHang, with Bank of America increasing its stake by 187.6% and Headlands Technologies raising its position by 26.7%.
• Analyst sentiment remains negative: EHang has a consensus “Reduce” rating, with five holds and three sells and an average price target of $6.70. The stock recently traded at $4.63, while the company continues to report losses and negative margins.

EHang Holdings Limited Unsponsored ADR (NASDAQ:EH - Get Free Report) was the recipient of unusually large options trading on Monday. Traders bought 3,686 call options on the company. This represents an increase of approximately 55% compared to the typical daily volume of 2,373 call options.

Institutional Trading of EHang

A number of institutional investors and hedge funds have recently bought and sold shares of EH. Leonteq Securities AG bought a new stake in shares of EHang during the 4th quarter valued at about $26,000. Bessemer Group Inc. bought a new position in shares of EHang during the 1st quarter worth approximately $51,000. FourThought Financial Partners LLC acquired a new stake in shares of EHang during the 4th quarter worth approximately $190,000. Headlands Technologies LLC increased its stake in shares of EHang by 26.7% in the 2nd quarter. Headlands Technologies LLC now owns 19,964 shares of the company's stock valued at $131,000 after acquiring an additional 4,209 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in EHang by 187.6% during the first quarter. Bank of America Corp DE now owns 30,312 shares of the company's stock worth $294,000 after acquiring an additional 19,771 shares in the last quarter. 94.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

EH has been the subject of a number of recent analyst reports. Weiss Ratings downgraded EHang from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $4.40 price target (down from $9.70) on shares of EHang in a research note on Monday, July 6th. Dbs Bank cut shares of EHang from a "buy" rating to a "hold" rating in a research report on Friday, August 28th. The Goldman Sachs Group downgraded shares of EHang from a "buy" rating to a "neutral" rating and set a $7.30 price objective on the stock. in a research note on Tuesday, July 14th. Finally, UBS Group lowered shares of EHang from a "buy" rating to a "neutral" rating and set a $11.10 target price on the stock. in a report on Thursday, June 4th. Five research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, EHang currently has a consensus rating of "Reduce" and a consensus price target of $6.70.

EHang Price Performance

NASDAQ:EH traded up $0.05 during trading hours on Monday, hitting $4.63. The company's stock had a trading volume of 136,261 shares, compared to its average volume of 801,372. EHang has a twelve month low of $4.31 and a twelve month high of $20.20. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.84 and a quick ratio of 1.65. The stock has a fifty day simple moving average of $5.10 and a 200-day simple moving average of $7.87. The company has a market capitalization of $347.51 million, a P/E ratio of -7.47 and a beta of 1.17.

EHang (NASDAQ:EH - Get Free Report) last announced its quarterly earnings results on Friday, August 14th. The company reported ($0.11) EPS for the quarter. The firm had revenue of $11.46 million during the quarter. EHang had a negative net margin of 74.74% and a negative return on equity of 32.73%. On average, analysts anticipate that EHang will post -0.83 EPS for the current fiscal year.

EHang declared that its Board of Directors has initiated a share repurchase plan on Monday, June 8th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

EHang Company Profile

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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