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

Key Points

• Unusual options activity: Traders purchased 6,312 EHang call options, approximately 161% above the typical volume of 2,421 contracts.
• Institutional ownership remains high: Several investors increased their positions, while hedge funds and other institutions collectively own 94.03% of EHang’s stock.
• Analyst sentiment is cautious: 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 $3.65, near its 52-week low of $3.64.

EHang Holdings Limited Unsponsored ADR (NASDAQ:EH - Get Free Report) saw some unusual options trading activity on Friday. Stock traders acquired 6,312 call options on the company. This is an increase of approximately 161% compared to the typical volume of 2,421 call options.

Institutional Investors Weigh In On EHang

Institutional investors have recently added to or reduced their stakes in the business. Leonteq Securities AG increased its holdings in EHang by 100.0% in the first quarter. Leonteq Securities AG now owns 4,000 shares of the company's stock valued at $39,000 after buying an additional 2,000 shares in the last quarter. Bessemer Group Inc. purchased a new stake in shares of EHang during the 1st quarter valued at about $51,000. Headlands Technologies LLC raised its holdings in shares of EHang by 26.7% during the 2nd quarter. Headlands Technologies LLC now owns 19,964 shares of the company's stock valued at $131,000 after buying an additional 4,209 shares during the period. Bank of America Corp DE lifted its position in EHang by 187.6% during the 1st 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. Finally, Hennion & Walsh Asset Management Inc. boosted its holdings in EHang by 24.4% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 55,305 shares of the company's stock worth $362,000 after acquiring an additional 10,860 shares during the period. Hedge funds and other institutional investors own 94.03% of the company's stock.

Wall Street Analysts Forecast Growth

EH has been the topic of a number of recent analyst reports. Bank of America reiterated an "underperform" rating and set a $5.40 target price (down from $13.00) on shares of EHang in a research report on Wednesday, July 8th. Dbs Bank lowered EHang from a "buy" rating to a "hold" rating in a report on Friday, August 28th. Morgan Stanley set a $5.30 target price on EHang and gave the stock an "equal weight" rating in a research note on Tuesday, September 15th. The Goldman Sachs Group cut shares of EHang from a "buy" rating to a "neutral" rating and set a $7.30 price objective for the company. in a research report on Tuesday, July 14th. Finally, Zacks Research raised EHang from a "strong sell" rating to a "hold" rating in a research report on Friday, September 4th. Five equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $6.70.

EHang Stock Performance

NASDAQ:EH traded down $0.26 during trading hours on Friday, reaching $3.65. 385,740 shares of the company's stock were exchanged, compared to its average volume of 792,511. The company has a quick ratio of 1.65, a current ratio of 1.84 and a debt-to-equity ratio of 0.13. EHang has a 1-year low of $3.64 and a 1-year high of $19.01. The company has a 50-day moving average of $4.71 and a 200 day moving average of $6.95. The firm has a market capitalization of $273.81 million, a price-to-earnings ratio of -5.88 and a beta of 1.15.

EHang (NASDAQ:EH - Get Free Report) last released its 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 return on equity of 32.73% and a negative net margin of 74.74%. Research analysts anticipate that EHang will post -0.72 EPS for the current year.

About EHang

EHang Holdings Limited is a technology company focused on autonomous aerial vehicles (AAVs) and urban air mobility. The company develops aircraft, autonomous flight technologies, command-and-control systems, and supporting services designed for passenger transportation, logistics, aerial firefighting, public safety, and other commercial applications.

EHang's product portfolio includes the EH216 series, an electric vertical takeoff and landing (eVTOL) aircraft family designed for autonomous passenger and cargo operations.

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