Pony AI (NASDAQ:PONY) Shares Gap Down - Time to Sell?

Key Points

• Pony AI shares fell sharply, opening at $7.90 after previously closing at $8.23 and later trading near $7.55. The stock remains below its 200-day moving average of $9.74.
• Analyst sentiment is generally positive: seven analysts rate the stock Buy, two Hold and one Sell, producing a “Moderate Buy” consensus with a $19.57 average price target.
• The company exceeded quarterly revenue and EPS expectations, reporting $34.25 million in revenue and a loss of $0.09 per share, but remains unprofitable with a negative net margin of 118.47%; insiders have also sold 45,558 shares worth about $312,528 in the past 90 days.

Pony AI Inc. - Sponsored ADR (NASDAQ:PONY - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $8.23, but opened at $7.90. Pony AI shares last traded at $7.5450, with a volume of 905,976 shares.

Analyst Ratings Changes

PONY has been the subject of several recent research reports. Jefferies Financial Group reaffirmed a "buy" rating on shares of Pony AI in a report on Tuesday, August 18th. Weiss Ratings cut Pony AI from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, June 11th. BNP Paribas Exane raised Pony AI from a "neutral" rating to an "outperform" rating in a research note on Thursday. Zacks Research upgraded Pony AI from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. Finally, Macquarie Infrastructure reissued an "outperform" rating and set a $24.00 price target on shares of Pony AI in a research report on Tuesday, May 26th. Seven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Pony AI presently has a consensus rating of "Moderate Buy" and a consensus target price of $19.57.

Pony AI Price Performance

The stock has a market capitalization of $3.27 billion, a price-to-earnings ratio of -20.93 and a beta of 3.96. The business has a fifty day moving average of $7.49 and a 200 day moving average of $9.74.

Pony AI (NASDAQ:PONY - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.03. Pony AI had a negative return on equity of 14.86% and a negative net margin of 118.47%.The company had revenue of $34.25 million during the quarter, compared to analysts' expectations of $22.30 million. On average, equities research analysts expect that Pony AI Inc. - Sponsored ADR will post -0.65 EPS for the current year.

Insider Transactions at Pony AI

In related news, VP Luyi Mo sold 14,460 shares of the firm's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $6.86, for a total transaction of $99,195.60. Following the completion of the sale, the vice president directly owned 350,156 shares of the company's stock, valued at approximately $2,402,070.16. This trade represents a 3.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Ning Zhang sold 17,347 shares of the business's stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $6.86, for a total transaction of $119,000.42. Following the completion of the sale, the vice president owned 630,109 shares in the company, valued at approximately $4,322,547.74. This trade represents a 2.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 45,558 shares of company stock worth $312,528.

Institutional Investors Weigh In On Pony AI

A number of institutional investors and hedge funds have recently made changes to their positions in PONY. Goldman Sachs Group Inc. purchased a new position in shares of Pony AI during the 1st quarter worth approximately $139,000. Invesco Ltd. purchased a new stake in Pony AI in the second quarter valued at approximately $206,000. First Trust Advisors LP purchased a new stake in Pony AI in the second quarter valued at approximately $276,000. Marshall Wace LLP raised its position in Pony AI by 4.7% in the second quarter. Marshall Wace LLP now owns 265,503 shares of the company's stock valued at $3,505,000 after purchasing an additional 11,986 shares during the period. Finally, Daiwa Securities Group Inc. acquired a new position in Pony AI during the second quarter worth $64,000.

About Pony AI

Pony AI Inc develops and commercializes autonomous driving technologies for passenger mobility, freight transportation and other applications. Its proprietary Virtual Driver platform integrates software, hardware and services, while its PonyWorld world model supports the development and deployment of its autonomous driving systems. The company operates three primary business lines: Robotaxi services, Robotruck services and Intelligent Solutions, which include autonomous driving domain controllers and other technology products and services for automakers and industry customers.

Founded in late 2016 in Fremont, California, by Jun “James” Peng and Tiancheng Lou, Pony.ai is headquartered in Guangzhou, China.

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