Unusual Machines (NYSEAMERICAN:UMAC) Shares Down 7.3% - Should You Sell?

Key Points

• Unusual Machines shares fell 7.3% to about $22.70, with trading volume roughly 60% below its average. The stock has a market capitalization of approximately $1.13 billion and a highly volatile beta of 14.78.
• Analysts remain broadly positive, with six Buy ratings and one Hold rating producing a consensus “Moderate Buy” rating and a $37 average price target, substantially above the current share price.
• The company met quarterly EPS expectations at a loss of $0.16 but reported revenue of $16.72 million, well above the $9.20 million estimate. Insiders sold 48,538 shares worth approximately $1.26 million over the past three months, while several institutional investors initiated or increased positions.

Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) dropped 7.3% during mid-day trading on Thursday. The company traded as low as $22.40 and last traded at $22.70. 1,870,306 shares traded hands during trading, a decline of 60% from the average session volume of 4,670,863 shares. The stock had previously closed at $24.48.

Analysts Set New Price Targets

Several brokerages have recently issued reports on UMAC. HC Wainwright started coverage on shares of Unusual Machines in a research report on Wednesday, July 15th. They set a "buy" rating and a $42.00 price target on the stock. ThinkEquity reiterated a "buy" rating on shares of Unusual Machines in a research note on Monday, August 17th. National Bank Financial set a $42.00 target price on Unusual Machines in a report on Wednesday, July 15th. Piper Sandler began coverage on Unusual Machines in a report on Wednesday, August 12th. They issued an "overweight" rating and a $38.00 price objective on the stock. Finally, Needham & Company LLC raised their price objective on shares of Unusual Machines from $30.00 to $40.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $37.00.

Unusual Machines Trading Down 7.9%

The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of -86.69 and a beta of 14.78. The business has a 50 day simple moving average of $24.38 and a 200-day simple moving average of $20.54.

Unusual Machines (NYSEAMERICAN:UMAC - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.16) EPS for the quarter, meeting the consensus estimate of ($0.16). Unusual Machines had a negative net margin of 20.29% and a negative return on equity of 7.62%. The firm had revenue of $16.72 million for the quarter, compared to analyst estimates of $9.20 million. Research analysts predict that Unusual Machines, Inc. will post -0.67 EPS for the current year.

Insider Buying and Selling

In other Unusual Machines news, President Andrew Ross Camden sold 9,625 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $26.01, for a total value of $250,346.25. Following the sale, the president directly owned 237,125 shares of the company's stock, valued at $6,167,621.25. This trade represents a 3.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Joseph Hoff sold 11,413 shares of Unusual Machines stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $26.01, for a total value of $296,852.13. Following the sale, the chief financial officer directly owned 341,237 shares in the company, valued at approximately $8,875,574.37. This trade represents a 3.24% 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. Insiders sold a total of 48,538 shares of company stock worth $1,262,198 in the last three months. 4.87% of the stock is owned by insiders.

Institutional Investors Weigh In On Unusual Machines

Hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC acquired a new position in Unusual Machines in the 2nd quarter worth approximately $52,000. IFP Advisors Inc increased its stake in shares of Unusual Machines by 281.4% in the second quarter. IFP Advisors Inc now owns 2,033 shares of the company's stock worth $45,000 after purchasing an additional 1,500 shares during the period. Squarepoint Ops LLC bought a new stake in Unusual Machines in the 2nd quarter valued at $4,872,000. Baird Financial Group Inc. boosted its stake in Unusual Machines by 3.7% during the second quarter. Baird Financial Group Inc. now owns 21,250 shares of the company's stock worth $474,000 after buying an additional 750 shares in the last quarter. Finally, Concurrent Investment Advisors LLC acquired a new position in Unusual Machines during the second quarter worth $1,446,000.

Unusual Machines Company Profile

Unusual Machines, Inc is a U.S.-based drone technology company that develops, manufactures and distributes unmanned aircraft systems and components. Its product portfolio is focused primarily on the first-person-view (FPV) drone market and includes drones, motors, propellers, flight controllers, frames, electronic components and FPV goggles.

The company sells products under brands including Rotor Riot and Fat Shark. Rotor Riot is associated with FPV drones, parts and accessories, while Fat Shark is known for FPV video goggles and related equipment.

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