Unusual Machines (NYSEAMERICAN:UMAC) Stock Price Down 8.4% - Here's What Happened

Key Points

• Unusual Machines shares fell 8.4% to $16.24, with trading volume down 83% from its average. The stock has a high beta of 14.80 and trades below its 50-day moving average of $24.25.
• Despite the decline, all six covering analysts rate the stock a Buy, with a consensus price target of $37—more than double the reported trading price.
• The company met quarterly EPS expectations at a loss of $0.16 and generated $16.72 million in revenue, exceeding estimates of $9.20 million; however, it remains unprofitable, with a negative net margin of 20.29%.

Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) shares fell 8.4% on Thursday. The company traded as low as $16.22 and last traded at $16.24. Approximately 771,394 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 4,587,517 shares. The stock had previously closed at $17.73.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. National Bank Financial set a $42.00 target price on shares of Unusual Machines in a research report on Wednesday, July 15th. Needham & Company LLC restated a "buy" rating and set a $40.00 price target on shares of Unusual Machines in a report on Wednesday, October 7th. ThinkEquity reaffirmed a "buy" rating on shares of Unusual Machines in a research note on Monday, August 17th. Piper Sandler assumed coverage on shares of Unusual Machines in a report on Wednesday, August 12th. They issued an "overweight" rating and a $38.00 price objective for the company. Finally, HC Wainwright initiated coverage on shares of Unusual Machines in a research report on Wednesday, July 15th. They set a "buy" rating and a $42.00 target price on the stock. Six analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, Unusual Machines presently has an average rating of "Buy" and a consensus price target of $37.00.

Unusual Machines Trading Down 3.7%

The company has a fifty day moving average of $24.25 and a two-hundred day moving average of $20.79. The stock has a market capitalization of $852.82 million, a price-to-earnings ratio of -65.65 and a beta of 14.80.

Unusual Machines (NYSEAMERICAN:UMAC - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported ($0.16) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.16). Unusual Machines had a negative return on equity of 7.62% and a negative net margin of 20.29%. The firm had revenue of $16.72 million during the quarter, compared to analysts' expectations of $9.20 million. As a group, sell-side analysts predict that Unusual Machines, Inc. will post -0.67 earnings per share for the current fiscal year.

Insider Transactions at Unusual Machines

In other news, CFO Brian Joseph Hoff sold 11,413 shares of the business's stock in a transaction 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 completion of the sale, the chief financial officer directly owned 341,237 shares in the company, valued at approximately $8,875,574.37. The trade was a 3.24% decrease in their ownership of the stock. The sale was disclosed in a 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. Also, President Andrew Ross Camden sold 9,625 shares of the company's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $26.01, for a total transaction of $250,346.25. Following the sale, the president directly owned 237,125 shares of the company's stock, valued at approximately $6,167,621.25. This represents a 3.90% decrease in their ownership of the stock. 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. Over the last three months, insiders sold 48,538 shares of company stock worth $1,262,198. 4.87% of the stock is owned by insiders.

Institutional Investors Weigh In On Unusual Machines

Several hedge funds have recently made changes to their positions in UMAC. Granahan Investment Management LLC acquired a new stake in shares of Unusual Machines during the 4th quarter worth approximately $14,708,000. Wasatch Advisors LP bought a new stake in Unusual Machines in the 2nd quarter valued at $8,087,000. Squarepoint Ops LLC acquired a new position in shares of Unusual Machines in the 2nd quarter valued at $4,872,000. Yorkville Advisors Global LP acquired a new position in shares of Unusual Machines in the 1st quarter valued at $1,692,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Unusual Machines during the 2nd quarter worth about $2,999,000.

Unusual Machines Company Profile

Unusual Machines, Inc develops, manufactures and sells components and systems for drones, with a focus on first-person-view (FPV) aircraft and other small unmanned aerial systems. Its product offerings include drone motors, propellers, flight controllers, frames and related electronic components used by recreational, commercial and government customers.

The company also markets and distributes FPV drone products through its Rotor Riot brand, which serves the FPV community with aircraft, equipment, accessories and related content.

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