Hyliion (NYSEAMERICAN:HYLN) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Hyliion reported quarterly EPS of -$0.06, beating the consensus estimate of -$0.08, while revenue of $7.45 million exceeded analysts’ $4.17 million forecast.
• Shares opened at $3.40 after previously closing at $2.99, but later traded at $2.8320, below the prior close.
• Analysts maintain a consensus “Buy” rating with an $8.67 price target; the article also notes a director’s purchase of 50,000 shares at $3.40 each.

Hyliion Holdings Corp. (NYSEAMERICAN:HYLN - Get Free Report) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $2.99, but opened at $3.40. Hyliion shares last traded at $2.8320, with a volume of 555,192 shares traded.

The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.02. Hyliion had a negative return on equity of 27.94% and a negative net margin of 564.34%. The firm had revenue of $7.45 million during the quarter, compared to analyst estimates of $4.17 million.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Craig Hallum initiated coverage on shares of Hyliion in a research note on Tuesday, September 29th. They set a "buy" rating and a $7.00 price objective for the company. Northland Securities raised shares of Hyliion from a "market perform" rating to an "outperform" rating and set a $10.00 price target for the company in a report on Thursday, August 13th. Three equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $8.67.

Insider Activity

In related news, Director Vincent Cubbage acquired 50,000 shares of the firm's stock in a transaction dated Thursday, August 27th. The shares were purchased at an average price of $3.40 per share, for a total transaction of $170,000.00. Following the completion of the acquisition, the director owned 1,131,363 shares in the company, valued at approximately $3,846,634.20. This represents a 4.62% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Company insiders own 21.40% of the company's stock.

Institutional Trading of Hyliion

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. J. Derek Lewis & Associates Inc. grew its position in shares of Hyliion by 39.6% in the 3rd quarter. J. Derek Lewis & Associates Inc. now owns 1,163,800 shares of the company's stock worth $4,853,000 after buying an additional 330,400 shares during the period. CenterBook Partners LP lifted its position in Hyliion by 94.6% during the 3rd quarter. CenterBook Partners LP now owns 578,114 shares of the company's stock valued at $2,411,000 after acquiring an additional 281,007 shares during the period. Dimensional Fund Advisors LP lifted its position in Hyliion by 34.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 799,672 shares of the company's stock valued at $1,406,000 after acquiring an additional 203,451 shares during the period. Inspire Investing LLC lifted its position in Hyliion by 14.4% during the 3rd quarter. Inspire Investing LLC now owns 153,181 shares of the company's stock valued at $639,000 after acquiring an additional 19,326 shares during the period. Finally, Renaissance Technologies LLC boosted its stake in Hyliion by 48.8% during the first quarter. Renaissance Technologies LLC now owns 318,600 shares of the company's stock worth $561,000 after acquiring an additional 104,500 shares in the last quarter. Hedge funds and other institutional investors own 22.81% of the company's stock.

Hyliion Price Performance

The firm has a market cap of $512.05 million, a P/E ratio of -9.56 and a beta of 3.74. The firm's 50 day moving average is $3.64 and its 200 day moving average is $3.47.

About Hyliion

Hyliion Holdings Corp. develops power generation technology for commercial and industrial applications. Its primary product is the KARNO power module, a distributed generator designed to produce electricity using a range of fuels. The company is developing the system for uses that may include data centers, industrial facilities and other sites needing on-site power. Hyliion was founded in 2015 by Thomas Healy, who serves as its chief executive officer. The company previously developed electrified powertrain systems for heavy-duty trucks before shifting its focus to stationary power generation.

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