NextNav (NASDAQ:NN) Hits New 12-Month Low - Time to Sell?

Key Points

• NextNav shares fell to a new 52-week low of $9.52, well below their 50-day and 200-day moving averages, giving the company a market capitalization of about $1.62 billion.
• Analyst opinions are mixed: recent downgrades include Wall Street Zen to “sell” and Zacks Research to “hold,” while the overall consensus remains “Moderate Buy” with a $32.33 target price.
• NextNav missed quarterly EPS expectations, reporting a loss of $0.24 per share versus an expected loss of $0.16, despite revenue of $1.15 million exceeding estimates; insiders have also sold 87,667 shares over the past 90 days.

NextNav Inc. (NASDAQ:NN - Get Free Report) shares reached a new 52-week low on Tuesday. The stock traded as low as $9.52 and last traded at $9.57, with a volume of 2,389,261 shares trading hands. The stock had previously closed at $9.59.

Analysts Set New Price Targets

A number of analysts have issued reports on NN shares. Wall Street Zen downgraded shares of NextNav from a "hold" rating to a "sell" rating in a report on Sunday, September 27th. Zacks Research downgraded shares of NextNav from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 20th. Wells Fargo & Company reissued a "buy" rating on shares of NextNav in a report on Monday, September 21st. Weiss Ratings restated a "sell (d-)" rating on shares of NextNav in a research report on Thursday. Finally, Clear Str upgraded NextNav to a "strong-buy" rating in a research report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, NextNav has an average rating of "Moderate Buy" and a consensus target price of $32.33.

NextNav Trading Down 0.2%

The stock has a 50 day simple moving average of $14.89 and a 200-day simple moving average of $16.82. The firm has a market cap of $1.62 billion, a P/E ratio of -9.87 and a beta of 1.16.

NextNav (NASDAQ:NN - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $1.15 million for the quarter, compared to analysts' expectations 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, equities analysts forecast that NextNav Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Timothy Gray sold 11,099 shares of the company's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $14.64, for a total transaction of $162,489.36. Following the sale, the chief financial officer owned 120,687 shares of the company's stock, valued at $1,766,857.68. This represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mariam Sorond sold 2,831 shares of the stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $14.72, for a total transaction of $41,672.32. Following the transaction, the chief executive officer owned 1,168,961 shares of the company's stock, valued at $17,207,105.92. This trade represents a 0.24% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last 90 days, insiders have sold 87,667 shares of company stock worth $1,331,153. Insiders own 7.80% of the company's stock.

Hedge Funds Weigh In On NextNav

Institutional investors and hedge funds have recently made changes to their positions in the business. Steel Grove Capital Advisors LLC purchased a new position in NextNav in the third quarter worth about $344,000. GK Wealth Management LLC bought a new stake in NextNav during the third quarter worth approximately $29,000. State Street Corp increased its stake in NextNav by 4.8% during the second quarter. State Street Corp now owns 2,343,255 shares of the company's stock worth $41,780,000 after acquiring an additional 108,338 shares during the last quarter. BlueCrest Capital Management Ltd bought a new stake in NextNav during the second quarter worth approximately $4,012,000. Finally, Squarepoint Ops LLC raised its position in NextNav by 592.0% during the second quarter. Squarepoint Ops LLC now owns 113,073 shares of the company's stock valued at $2,016,000 after purchasing an additional 96,734 shares during the period. 79.16% of the stock is owned by hedge funds and other institutional investors.

About NextNav

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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