NextNav (NASDAQ:NN) Stock Jumps 7.6% - Here's What Happened

Key Points

• NextNav shares jumped 7.6% to $9.91 in Friday trading, although volume was about 65% below the average daily level.
• Analyst sentiment remains mixed, with ratings ranging from Strong Buy to Sell; the stock carries a “Moderate Buy” consensus and a $32.33 average price target.
• The company reported a quarterly loss of $0.24 per share, missing estimates by $0.08, despite revenue of $1.15 million exceeding expectations. Insiders sold shares recently, while institutional investors own approximately 79.16% of the stock.

NextNav Inc. (NASDAQ:NN - Get Free Report) rose 7.6% on Friday. The stock traded as high as $9.79 and last traded at $9.91. Approximately 804,649 shares were traded during mid-day trading, a decline of 65% from the average daily volume of 2,316,518 shares. The stock had previously closed at $9.21.

Analysts Set New Price Targets

A number of analysts have commented on NN shares. Wall Street Zen downgraded NextNav from a "hold" rating to a "sell" rating in a research report on Sunday, September 27th. Zacks Research cut shares of NextNav from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 20th. Wells Fargo & Company restated 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 for the company. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NextNav in a report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $32.33.

NextNav Price Performance

The firm's 50-day moving average price is $14.33 and its 200-day moving average price is $16.68. The company has a market cap of $1.68 billion, a price-to-earnings ratio of -10.22 and a beta of 1.16.

NextNav (NASDAQ:NN - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $1.15 million for the quarter, compared to analyst estimates of $0.92 million. On average, sell-side analysts anticipate that NextNav Inc. will post -0.46 earnings per share for the current year.

Insider Activity

In other news, CEO Mariam Sorond sold 2,831 shares of NextNav stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $14.72, for a total transaction of $41,672.32. Following the sale, the chief executive officer directly owned 1,168,961 shares of the company's stock, valued at approximately $17,207,105.92. The trade was a 0.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. Also, General Counsel James Black sold 1,878 shares of the business's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $15.34, for a total value of $28,808.52. Following the completion of the transaction, the general counsel owned 89,810 shares in the company, valued at approximately $1,377,685.40. This trade represents a 2.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 87,667 shares of company stock worth $1,331,153 over the last ninety days. Corporate insiders own 7.80% of the company's stock.

Institutional Investors Weigh In On NextNav

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sterling Capital Management LLC bought a new stake in shares of NextNav during the 3rd quarter valued at about $49,000. Nisa Investment Advisors LLC bought a new position in NextNav in the third quarter worth about $147,000. Steel Grove Capital Advisors LLC acquired a new position in NextNav in the third quarter valued at approximately $344,000. GK Wealth Management LLC bought a new position in shares of NextNav during the third quarter valued at approximately $29,000. Finally, State Street Corp raised its position in shares of NextNav by 4.8% during 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 during the period. Institutional investors own 79.16% of the company's stock.

NextNav Company Profile

NextNav Inc NASDAQ: NN develops positioning, navigation and timing technologies designed to provide reliable location information in environments where traditional GPS and satellite-based systems may be unavailable, inaccurate or vulnerable to disruption. The company's services are intended for applications in communications, public safety, transportation, logistics, mapping and other industries that rely on precise location and timing data.

NextNav's primary products include Pinnacle, a terrestrial network that provides three-dimensional positioning, including accurate altitude information, and TerraPoiNT, a terrestrial positioning, navigation and timing system designed to complement or serve as an alternative to GPS.

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