Webull Sees Unusually Large Options Volume (NASDAQ:BULL)

Key Points

• Unusually high options activity: Traders bought 100,242 Webull call options, 62% above the typical volume of 61,811 contracts.
• Shares plunged: Webull stock fell 20.8% to $5.76 on heavy trading volume, amid concerns over alleged China ties, potential regulatory scrutiny and a securities investigation.
• Mixed ownership and analyst signals: Several institutional investors increased their stakes, while insiders sold shares during the quarter. Analysts’ average rating remains Hold, with a consensus price target of $11.

Webull Corporation (NASDAQ:BULL - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock traders bought 100,242 call options on the stock. This is an increase of 62% compared to the typical volume of 61,811 call options.

Insider Buying and Selling at Webull

In other Webull news, President Anthony Michael Denier sold 53,848 shares of the business's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $8.83, for a total value of $475,477.84. Following the completion of the sale, the president owned 2,332,295 shares of the company's stock, valued at $20,594,164.85. The trade was a 2.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Haichen Wang sold 55,000 shares of the firm's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $8.98, for a total value of $493,900.00. Following the transaction, the chief financial officer owned 772,046 shares in the company, valued at approximately $6,932,973.08. This represents a 6.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 320,659 shares of company stock valued at $2,781,375. Corporate insiders own 35.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Tidal Investments LLC raised its position in shares of Webull by 148.8% in the second quarter. Tidal Investments LLC now owns 2,741,993 shares of the company's stock valued at $17,878,000 after purchasing an additional 1,640,067 shares during the period. Integrated Wealth Concepts LLC increased its stake in Webull by 92.1% in the second quarter. Integrated Wealth Concepts LLC now owns 42,740 shares of the company's stock valued at $279,000 after purchasing an additional 20,487 shares in the last quarter. Allworth Financial LP grew its stake in shares of Webull by 67.0% in the 2nd quarter. Allworth Financial LP now owns 8,320 shares of the company's stock worth $54,000 after acquiring an additional 3,337 shares in the last quarter. Waverly Advisors LLC purchased a new position in Webull during the 2nd quarter valued at about $87,000. Finally, Corient Private Wealth LP raised its holdings in shares of Webull by 76.4% during the 2nd quarter. Corient Private Wealth LP now owns 406,761 shares of the company's stock valued at $2,652,000 after buying an additional 176,233 shares in the last quarter. Institutional investors and hedge funds own 92.48% of the company's stock.

Key Headlines Impacting Webull

Here are the key news stories impacting Webull this week:

• Positive Sentiment: Webull joined X’s Cashtag Partner Program, which could increase the platform’s visibility and connect stock and cryptocurrency discussions more directly with its trading services. Webull Joins X’s Cashtag Partner Program
• Neutral Sentiment: Webull disputed the congressional findings, describing portions of the report as inaccurate and based on unsupported conclusions. The company’s response may help limit longer-term damage, but investors will likely focus on any subsequent regulatory or government action. Webull Stock Plummets as House Panel Flags China Ties
• Negative Sentiment: The House Select Committee on China said Webull is linked to the Chinese government “in structural ways” and characterized the relationship as a national-security risk. The allegations could increase political and regulatory pressure on the brokerage and weaken investor confidence. Trading platform Webull’s China ties create national security risk
• Negative Sentiment: A law firm has begun investigating potential securities claims on behalf of Webull investors, adding litigation risk and another negative headline for the company. Webull Securities Investigation
• Negative Sentiment: President Anthony Michael Denier sold 53,846 shares for approximately $394,691 under a pre-arranged Rule 10b5-1 plan. Although the scheduled nature reduces the significance of the transaction, the sale adds pressure amid the broader selloff. Webull Insider Share Sale

Wall Street Analysts Forecast Growth

BULL has been the topic of a number of recent analyst reports. Weiss Ratings raised Webull from a "sell (d-)" rating to a "sell (d)" rating in a report on Monday, September 14th. Rosenblatt Securities reiterated a "buy" rating and set a $15.00 target price on shares of Webull in a research report on Friday, August 28th. Wall Street Zen raised shares of Webull from a "sell" rating to a "hold" rating in a research note on Saturday, August 22nd. Finally, Scotiabank initiated coverage on shares of Webull in a research report on Wednesday, September 2nd. They set a "sector perform" rating and a $9.00 price target on the stock. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $11.00.

Webull Stock Down 20.8%

BULL traded down $1.51 during trading hours on Wednesday, hitting $5.76. 51,952,521 shares of the company's stock were exchanged, compared to its average volume of 12,730,733. The stock has a market cap of $3.07 billion, a price-to-earnings ratio of 72.70 and a beta of 0.64. Webull has a 1-year low of $4.50 and a 1-year high of $13.25. The stock's 50-day moving average is $8.17 and its two-hundred day moving average is $7.10.

Webull (NASDAQ:BULL - Get Free Report) last issued its quarterly earnings results on Wednesday, August 19th. The company reported $0.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.11. The firm had revenue of $198.83 million for the quarter. Webull had a return on equity of 5.95% and a net margin of 6.26%.Webull's revenue was up 51.2% compared to the same quarter last year. On average, equities research analysts anticipate that Webull will post 0.14 EPS for the current year.

Webull Company Profile

Webull Corporation NASDAQ: BULL is a financial technology company that operates a digital investment platform and online brokerage. Its services are designed for self-directed investors and provide access to market information, research tools, charting and portfolio-management features through mobile and web-based applications.

Through its brokerage businesses, Webull offers trading in products that may include U.S.-listed stocks, exchange-traded funds, options and fractional shares, along with retirement accounts, margin services and other investing features, subject to availability and regulatory requirements.

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