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

Key Points

• Unusual options activity: Investors purchased 71,663 NextNav call options, 237% above the typical daily volume of 21,238 contracts.
• Stock and financial performance: NextNav shares closed at $13.27, near the lower end of their 12-month range, while the company reported a quarterly EPS loss of $0.24 that missed estimates despite revenue exceeding expectations.
• Mixed sentiment: Analysts’ consensus rating is “Moderate Buy” with an average price target of $32.33, although recent ratings range from “Strong Buy” to “Sell.” Insiders sold shares primarily to cover tax obligations tied to equity awards.

NextNav Inc. (NASDAQ:NN - Get Free Report) was the recipient of some unusual options trading on Tuesday. Investors purchased 71,663 call options on the company. This is an increase of 237% compared to the typical daily volume of 21,238 call options.

Insider Buying and Selling at NextNav

In other news, General Counsel James Black sold 1,878 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $15.34, for a total value of $28,808.52. Following the sale, the general counsel directly owned 89,810 shares of the company's stock, valued at $1,377,685.40. This represents a 2.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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, CFO Timothy Gray sold 11,099 shares of NextNav stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $14.64, for a total value of $162,489.36. Following the transaction, the chief financial officer owned 120,687 shares in the company, valued at approximately $1,766,857.68. The trade was a 8.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 87,667 shares of company stock valued at $1,331,153 in the last quarter. 7.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. 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 position in NextNav during the 2nd quarter worth approximately $53,000. Caitong International Asset Management Co. Ltd raised its position in shares of NextNav by 732.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,127 shares of the company's stock worth $69,000 after acquiring an additional 3,631 shares in the last quarter. Sei Investments Co. bought a new position in NextNav during the 1st quarter valued at about $231,000. Finally, Park Edge Advisors LLC increased its stake in NextNav by 33.2% in the first quarter. Park Edge Advisors LLC now owns 22,542 shares of the company's stock valued at $361,000 after acquiring an additional 5,614 shares during the last quarter. 79.16% of the stock is owned by hedge funds and other institutional investors.

NextNav Stock Performance

NextNav stock traded down $0.05 during trading on Tuesday, reaching $13.27. The company had a trading volume of 4,905,243 shares, compared to its average volume of 2,261,475. The firm has a market capitalization of $2.24 billion, a price-to-earnings ratio of -13.68 and a beta of 1.16. NextNav has a 12-month low of $10.87 and a 12-month high of $24.42. The stock's 50 day moving average price is $15.46 and its two-hundred day moving average price is $17.28.

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

Wall Street Analyst Weigh In

Several research analysts have weighed in on NN shares. Wall Street Zen cut NextNav from a "hold" rating to a "sell" rating in a research report on Sunday, September 27th. Odeon Capital Group began coverage on NextNav in a research note on Monday, July 20th. They issued a "buy" rating and a $22.00 price objective on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NextNav in a research report on Friday, July 17th. Clear Str upgraded shares of NextNav to a "strong-buy" rating in a research report on Monday, September 21st. Finally, Wells Fargo & Company reiterated a "buy" rating on shares of NextNav in a research note on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, NextNav currently has a consensus rating of "Moderate Buy" and an average target price of $32.33.

NextNav Company Profile

NextNav Inc develops positioning, navigation and timing technologies designed to provide accurate location information where traditional GPS may be unavailable, unreliable or insufficient. The company's solutions are intended to support applications that require precise two-dimensional and three-dimensional geolocation, including public safety, wireless communications, mapping, transportation and critical infrastructure.

Its Pinnacle platform provides nationwide vertical-location services, enabling devices and networks to determine elevation or floor level in addition to latitude and longitude.

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