Power Solutions International Target of Unusually High Options Trading (NASDAQ:PSIX)

Key Points

• Unusual options activity: Investors purchased 2,425 PSIX call options, 143% above the typical volume of 998 calls.
• Shares rose 2.9%: Power Solutions International stock reached $41.66 in mid-day trading, while its latest quarter included $0.78 in EPS and $152.54 million in revenue.
• Analyst sentiment remains positive: The stock has a consensus “Buy” rating and a $99.95 price target, although ratings range from Hold to Strong Buy. Institutional investors own 22.28% of the company, with several firms increasing their positions.

Power Solutions International, Inc. (NASDAQ:PSIX - Get Free Report) was the target of some unusual options trading on Tuesday. Stock investors purchased 2,425 call options on the stock. This represents an increase of 143% compared to the typical volume of 998 call options.

Power Solutions International Stock Up 2.9%

Shares of NASDAQ:PSIX traded up $1.17 during mid-day trading on Tuesday, reaching $41.66. 101,139 shares of the stock were exchanged, compared to its average volume of 593,641. The stock's 50 day simple moving average is $35.07 and its 200-day simple moving average is $50.23. Power Solutions International has a one year low of $25.28 and a one year high of $119.70. The company has a market cap of $961.14 million, a P/E ratio of 14.10 and a beta of 2.11. The company has a quick ratio of 1.49, a current ratio of 2.57 and a debt-to-equity ratio of 0.35.

Power Solutions International (NASDAQ:PSIX - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.78 EPS for the quarter. Power Solutions International had a return on equity of 37.73% and a net margin of 10.03%.The firm had revenue of $152.54 million for the quarter.

Analyst Upgrades and Downgrades

Several analysts have commented on PSIX shares. Weiss Ratings downgraded shares of Power Solutions International from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, July 24th. Freedom Capital raised shares of Power Solutions International from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $99.95.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System raised its stake in shares of Power Solutions International by 4,236.2% during the 2nd quarter. California State Teachers Retirement System now owns 378,944 shares of the company's stock worth $14,737,000 after purchasing an additional 370,205 shares in the last quarter. AlphaGrep UK Ltd bought a new position in shares of Power Solutions International in the second quarter valued at $218,000. Triumph Capital Management grew its stake in shares of Power Solutions International by 32.9% in the second quarter. Triumph Capital Management now owns 4,924 shares of the company's stock valued at $191,000 after buying an additional 1,219 shares in the last quarter. Newtyn Management LLC acquired a new position in Power Solutions International during the second quarter worth $23,369,000. Finally, Kerrisdale Advisers LLC increased its holdings in Power Solutions International by 115.8% during the second quarter. Kerrisdale Advisers LLC now owns 25,175 shares of the company's stock worth $979,000 after buying an additional 13,510 shares during the last quarter. Institutional investors and hedge funds own 22.28% of the company's stock.

About Power Solutions International

Power Solutions International, Inc is a global designer and manufacturer of integrated powertrain solutions for commercial vehicle, industrial and military applications. Headquartered in Wood Dale, Illinois, the company develops and assembles advanced diesel engine and transmission packages under the Atlas® brand, combining proprietary engine technology with high-efficiency transmissions to deliver power-dense systems. These solutions are tailored for medium- and heavy-duty trucks, buses, construction equipment, generator sets and specialty vehicles.

In addition to complete powertrain systems, the company offers a broad range of component products including diesel engines, transmissions and aftertreatment modules.

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