NextNav (NASDAQ:NN) Shares Gap Up - Time to Buy?

Key Points

• NextNav shares surged 8.1%, opening at $13.00 versus a previous close of $11.60, before trading near $12.87.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and a $32.33 target price, although ratings range from “Strong Buy” to “Sell.”
• The company remains unprofitable: it reported a quarterly loss of $0.24 per share versus a $0.16 expected loss, despite revenue of $1.15 million exceeding estimates.

Shares of NextNav Inc. (NASDAQ:NN - Get Free Report) gapped up prior to trading on Friday. The stock had previously closed at $11.60, but opened at $13.00. NextNav shares last traded at $12.8680, with a volume of 1,141,621 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Zacks Research lowered NextNav from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 20th. Clear Str raised shares of NextNav to a "strong-buy" rating in a research note on Monday, September 21st. Wells Fargo & Company reiterated a "buy" rating on shares of NextNav in a report on Monday, September 21st. Odeon Capital Group began coverage on shares of NextNav in a research report on Monday, July 20th. They set a "buy" rating and a $22.00 target price on the stock. Finally, Wall Street Zen cut shares of NextNav from a "hold" rating to a "sell" rating in a research report on Sunday, September 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $32.33.

NextNav Trading Up 8.1%

The stock has a market capitalization of $2.12 billion, a P/E ratio of -12.93 and a beta of 1.16. The company has a 50-day moving average price of $15.41 and a 200 day moving average price of $17.16.

NextNav (NASDAQ:NN - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($0.24) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.08). NextNav had a negative net margin of 3,232.19% and a negative return on equity of 211.25%. The company had revenue of $1.15 million for the quarter, compared to the consensus estimate of $0.92 million. As a group, research analysts expect that NextNav Inc. will post -0.46 earnings per share for the current year.

Insider Activity

In other news, CFO Timothy Gray sold 11,099 shares of NextNav stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $14.64, for a total value of $162,489.36. Following the transaction, the chief financial officer owned 120,687 shares of the company's stock, valued at $1,766,857.68. The trade was a 8.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel James Black sold 1,878 shares of NextNav stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $15.34, for a total transaction of $28,808.52. Following the completion of the transaction, the general counsel directly owned 89,810 shares in the company, valued at approximately $1,377,685.40. The trade was a 2.05% 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. In the last ninety days, insiders have sold 87,667 shares of company stock worth $1,331,153. Corporate insiders own 7.80% of the company's stock.

Hedge Funds Weigh In On NextNav

Several institutional investors and hedge funds have recently bought and sold shares of NN. State Street Corp boosted its position in shares of NextNav by 4.8% in the 2nd quarter. State Street Corp now owns 2,343,255 shares of the company's stock worth $41,780,000 after purchasing an additional 108,338 shares in the last quarter. Sona Asset Management US LLC increased its position in NextNav by 37.9% during the 1st quarter. Sona Asset Management US LLC now owns 521,477 shares of the company's stock valued at $8,354,000 after buying an additional 143,349 shares in the last quarter. First Trust Advisors LP raised its stake in NextNav by 3.8% in the first quarter. First Trust Advisors LP now owns 296,391 shares of the company's stock valued at $4,748,000 after buying an additional 10,761 shares during the last quarter. Bank of America Corp DE raised its stake in NextNav by 1.2% in the first quarter. Bank of America Corp DE now owns 260,018 shares of the company's stock valued at $4,165,000 after buying an additional 3,028 shares during the last quarter. Finally, BlueCrest Capital Management Ltd purchased a new stake in NextNav during the 2nd quarter worth approximately $4,012,000. 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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