Stock Traders Buy Large Volume of Call Options on NextNav (NASDAQ:NN)

Key Points

• NextNav saw unusually heavy call-option activity, with traders purchasing 62,806 calls—about 171% above its typical daily volume.
• NextNav shares rose 5.6% to $11.91, while the company continues to report losses; its latest quarterly EPS missed estimates despite revenue exceeding expectations.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and a $32.33 price target. Insiders sold shares primarily to cover tax obligations, while institutional investors own 79.16% of the stock.

NextNav Inc. (NASDAQ:NN - Get Free Report) saw some unusual options trading activity on Tuesday. Traders purchased 62,806 call options on the company. This represents an increase of approximately 171% compared to the typical daily volume of 23,164 call options.

Insiders Place Their Bets

In other news, CFO Timothy Gray sold 11,099 shares of NextNav stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $14.64, for a total value of $162,489.36. Following the completion of the transaction, the chief financial officer directly owned 120,687 shares of the company's stock, valued at approximately $1,766,857.68. The trade was a 8.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mariam Sorond sold 69,853 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $15.30, for a total value of $1,068,750.90. Following the transaction, the chief executive officer owned 1,171,792 shares of the company's stock, valued at $17,928,417.60. This trade represents a 5.63% decrease in their position. 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. Insiders sold a total of 87,667 shares of company stock valued at $1,331,153 in the last ninety days. Corporate insiders own 7.80% of the company's stock.

Institutional Trading of NextNav

Several hedge funds have recently modified their holdings of the company. GK Wealth Management LLC acquired a new stake in shares of NextNav during the third quarter worth $29,000. KBC Group NV acquired a new position in shares of NextNav during the 1st quarter valued at about $38,000. Grove Bank & Trust acquired a new stake in NextNav in the 2nd quarter valued at approximately $53,000. Sterling Capital Management LLC purchased a new stake in NextNav during the 3rd quarter worth about $49,000. Finally, Nisa Investment Advisors LLC purchased a new stake in shares of NextNav during the 3rd quarter worth approximately $147,000. 79.16% of the stock is owned by hedge funds and other institutional investors.

NextNav Trading Up 5.6%

Shares of NASDAQ NN traded up $0.63 during midday trading on Tuesday, hitting $11.91. 3,369,937 shares of the company's stock were exchanged, compared to its average volume of 2,379,723. The company has a market cap of $2.01 billion, a price-to-earnings ratio of -12.28 and a beta of 1.16. NextNav has a 12-month low of $8.98 and a 12-month high of $24.42. The business's fifty day moving average price is $14.06 and its two-hundred day moving average price is $16.45.

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

Wall Street Analyst Weigh In

NN has been the topic of several research reports. Odeon Capital Group initiated coverage on shares of NextNav in a research report on Monday, July 20th. They set a "buy" rating and a $22.00 price target on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NextNav in a research report on Thursday, October 15th. Clear Str raised shares of NextNav to a "strong-buy" rating in a research note on Monday, September 21st. Wells Fargo & Company reissued a "buy" rating on shares of NextNav in a research report on Monday, September 21st. Finally, Wall Street Zen lowered NextNav from a "hold" rating to a "sell" rating in a research note on Sunday, September 27th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, NextNav presently has an average rating of "Moderate Buy" and a consensus price target of $32.33.

NextNav Company Profile

NextNav Inc NASDAQ: NN develops positioning, navigation and timing technologies designed to provide reliable location information in environments where traditional GPS and satellite-based systems may be unavailable, inaccurate or vulnerable to disruption. The company's services are intended for applications in communications, public safety, transportation, logistics, mapping and other industries that rely on precise location and timing data.

NextNav's primary products include Pinnacle, a terrestrial network that provides three-dimensional positioning, including accurate altitude information, and TerraPoiNT, a terrestrial positioning, navigation and timing system designed to complement or serve as an alternative to GPS.

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