Investors Purchase Large Volume of NextNav Call Options (NASDAQ:NN)

Key Points

• NextNav call-option activity surged: Investors purchased 47,744 call options, 143% above the average volume of 19,682 contracts.
• Analyst sentiment remains mixed: Ratings range from buy to sell, resulting in a consensus “Hold” rating and an average price target of $32.33.
• Shares declined 2.5% to $15.47 as NextNav reported a quarterly loss of $0.24 per share, missing estimates, despite revenue of $1.15 million exceeding expectations.

NextNav Inc. (NASDAQ:NN - Get Free Report) was the recipient of some unusual options trading on Tuesday. Investors purchased 47,744 call options on the company. This is an increase of 143% compared to the average volume of 19,682 call options.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Zacks Research cut shares of NextNav from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 20th. Odeon Capital Group assumed coverage on shares of NextNav in a research note on Monday, July 20th. They issued a "buy" rating and a $22.00 price target for the company. Oppenheimer raised their price objective on shares of NextNav from $25.00 to $50.00 and gave the stock an "outperform" rating in a report on Wednesday, June 3rd. Wall Street Zen cut NextNav from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of NextNav in a report on Friday, July 17th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $32.33.

NextNav Trading Down 2.5%

NASDAQ:NN traded down $0.40 on Tuesday, reaching $15.47. 952,443 shares of the stock traded hands, compared to its average volume of 2,217,209. The company has a market capitalization of $2.61 billion, a price-to-earnings ratio of -15.92 and a beta of 1.10. NextNav has a 12 month low of $10.87 and a 12 month high of $24.42. The company's fifty day simple moving average is $15.82 and its 200 day simple moving average is $17.60.

NextNav (NASDAQ:NN - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported ($0.24) EPS for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.08). NextNav had a negative net margin of 3,232.19% and a negative return on equity of 211.25%. The firm had revenue of $1.15 million for the quarter, compared to analysts' expectations of $0.92 million. Equities analysts anticipate that NextNav will post -0.46 EPS for the current fiscal year.

Insider Transactions at NextNav

In other news, General Counsel James S. Black sold 1,878 shares of the business's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $22.96, for a total value of $43,118.88. Following the completion of the sale, the general counsel owned 91,688 shares of the company's stock, valued at approximately $2,105,156.48. The trade was a 2.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Sammaad Shams sold 2,006 shares of the stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $17.84, for a total value of $35,787.04. Following the sale, the chief accounting officer owned 70,944 shares of the company's stock, valued at $1,265,640.96. This represents a 2.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 6,714 shares of company stock worth $130,780. Company insiders own 7.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of NN. Caitong International Asset Management Co. Ltd lifted its position in NextNav by 347.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,217 shares of the company's stock valued at $37,000 after purchasing an additional 1,721 shares during the period. KBC Group NV bought a new stake in NextNav in the 1st quarter worth approximately $38,000. Grove Bank & Trust purchased a new stake in NextNav during the 2nd quarter valued at $53,000. Kemnay Advisory Services Inc. purchased a new position in shares of NextNav in the 4th quarter worth $97,000. Finally, Osterweis Capital Management Inc. bought a new stake in shares of NextNav in the fourth quarter worth $109,000. Hedge funds and other institutional investors own 79.16% of the company's stock.

NextNav Company Profile

NextNav, Inc is a provider of advanced 3D geolocation infrastructure and positioning services in the United States. The company operates a nationwide network designed to deliver real-time horizontal and vertical location data for consumer, enterprise and public safety applications. By leveraging spectrum holdings in the 900 MHz band, NextNav’s network offers precise altitude and position information that complements GPS and other satellite systems, particularly in urban canyons, indoors or underground environments where traditional signals struggle.

At the core of NextNav’s offering is its TerraPoiNT platform, which enables developers, carriers and emergency response centers to integrate high-accuracy vertical location into their applications and workflows.

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