Pony AI (NASDAQ:PONY) Sets New 1-Year Low - Time to Sell?

Key Points

• Pony AI shares hit a new 52-week low, trading as low as $6.49 and recently around $6.51, below the prior close of $6.59.
• Despite the weak stock performance, analysts remain broadly positive: the consensus rating is “Moderate Buy” with a target price of $19.95, though some firms have recently cut targets or downgraded the stock.
• The company recently beat quarterly earnings and revenue expectations, but it still posted losses, and insiders have been selling shares while several institutional investors added or initiated positions.

Pony AI Inc. - Sponsored ADR (NASDAQ:PONY - Get Free Report) shares reached a new 52-week low on Monday . The company traded as low as $6.49 and last traded at $6.5120, with a volume of 93167 shares. The stock had previously closed at $6.59.

Wall Street Analysts Forecast Growth

PONY has been the subject of a number of analyst reports. The Goldman Sachs Group set a $30.00 price target on Pony AI in a research report on Thursday, April 16th. Barclays lowered their price objective on Pony AI from $15.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Monday, March 30th. Weiss Ratings cut Pony AI from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, June 11th. HSBC started coverage on Pony AI in a report on Tuesday, March 31st. They issued a "buy" rating and a $16.60 target price for the company. Finally, Zacks Research upgraded Pony AI from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Pony AI has a consensus rating of "Moderate Buy" and a consensus target price of $19.95.

Pony AI Stock Performance

The stock has a market capitalization of $2.49 billion, a price-to-earnings ratio of -17.89 and a beta of 4.04. The business has a 50-day moving average of $8.45 and a 200-day moving average of $11.46.

Pony AI (NASDAQ:PONY - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported ($0.09) EPS for the quarter, beating analysts' consensus estimates of ($0.12) by $0.03. The company had revenue of $34.25 million for the quarter, compared to analysts' expectations of $22.30 million. Pony AI had a negative net margin of 128.22% and a negative return on equity of 17.13%. Equities analysts predict that Pony AI Inc. - Sponsored ADR will post -0.67 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Luyi Mo sold 14,460 shares of the company's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $6.86, for a total value of $99,195.60. Following the transaction, the vice president directly owned 350,156 shares in the company, valued at approximately $2,402,070.16. This represents a 3.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Haojun Wang sold 13,751 shares of the stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $6.86, for a total transaction of $94,331.86. Following the transaction, the chief financial officer directly owned 1,442,504 shares of the company's stock, valued at $9,895,577.44. The trade was a 0.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 45,558 shares of company stock valued at $312,528.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Goldman Sachs Group Inc. acquired a new stake in shares of Pony AI in the first quarter valued at $139,000. Invesco Ltd. acquired a new position in Pony AI during the 2nd quarter worth about $206,000. First Trust Advisors LP purchased a new position in Pony AI during the 2nd quarter valued at about $276,000. Marshall Wace LLP boosted its holdings in Pony AI by 4.7% during the 2nd quarter. Marshall Wace LLP now owns 265,503 shares of the company's stock valued at $3,505,000 after acquiring an additional 11,986 shares during the period. Finally, Daiwa Securities Group Inc. acquired a new position in Pony AI in the 2nd quarter valued at about $64,000.

Pony AI Company Profile

Pony.ai develops autonomous driving technologies for passenger and goods transportation. The company offers an end-to-end self-driving stack that combines perception, planning and control systems with proprietary hardware and software. Pony.ai’s solutions support robotaxi services and advanced driver-assistance system (ADAS) deployments across urban and suburban environments.

Founded in late 2016 by James Peng and Sean Gong, Pony.ai operates research and development centers in Fremont, California, as well as in Guangzhou and Beijing, China.

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