Unusual Machines (NYSEAMERICAN:UMAC) Trading 4.7% Higher - Still a Buy?

Key Points

• Unusual Machines shares rose 4.7% to $23.75 in midday trading, though volume was 76% below the average session level. The company has a $1.19 billion market capitalization and highly volatile stock, with a beta of 14.78.
• Analyst sentiment is favorable, with six Buy ratings and one Hold, producing a “Moderate Buy” consensus and an average price target of $37, above the current share price.
• The company matched quarterly EPS expectations at a loss of $0.16 but substantially exceeded revenue forecasts, reporting $16.72 million versus the $9.20 million estimate. Insiders sold $1.26 million of stock over the past 90 days, while several institutional investors recently established or increased positions.

Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) shares shot up 4.7% during mid-day trading on Thursday . The company traded as high as $23.79 and last traded at $23.75. 1,157,447 shares were traded during mid-day trading, a decline of 76% from the average session volume of 4,735,973 shares. The stock had previously closed at $22.69.

Analyst Ratings Changes

Several research analysts have weighed in on UMAC shares. Needham & Company LLC raised their price objective on shares of Unusual Machines from $30.00 to $40.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Roth Capital boosted their price objective on Unusual Machines to $40.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Piper Sandler assumed coverage on Unusual Machines in a report on Wednesday, August 12th. They set an "overweight" rating and a $38.00 target price on the stock. HC Wainwright assumed coverage on Unusual Machines in a research report on Wednesday, July 15th. They issued a "buy" rating and a $42.00 target price for the company. Finally, National Bank Financial set a $42.00 price target on Unusual Machines in a report on Wednesday, July 15th. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $37.00.

Unusual Machines Stock Performance

The stock has a market cap of $1.19 billion, a price-to-earnings ratio of -91.31 and a beta of 14.78. The company's 50 day simple moving average is $23.75 and its 200 day simple moving average is $20.35.

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

Insider Activity

In other Unusual Machines news, CRO Stacy Rochelle Wright sold 27,500 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $26.00, for a total value of $715,000.00. Following the completion of the sale, the executive owned 68,750 shares in the company, valued at $1,787,500. This represents a 28.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Joseph Hoff sold 11,413 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 $296,852.13. Following the sale, the chief financial officer owned 341,237 shares of the company's stock, valued at approximately $8,875,574.37. This represents a 3.24% 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. Insiders have sold 48,538 shares of company stock worth $1,262,198 in the last 90 days. Company insiders own 4.87% of the company's stock.

Institutional Investors Weigh In On Unusual Machines

A number of hedge funds have recently bought and sold shares of the company. Integrated Wealth Concepts LLC bought a new position in Unusual Machines in the second quarter worth $52,000. IFP Advisors Inc boosted its position in shares of Unusual Machines by 281.4% during the 2nd quarter. IFP Advisors Inc now owns 2,033 shares of the company's stock valued at $45,000 after acquiring an additional 1,500 shares in the last quarter. Squarepoint Ops LLC acquired a new position in Unusual Machines in the second quarter worth about $4,872,000. Baird Financial Group Inc. lifted 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 purchasing an additional 750 shares during the period. Finally, Concurrent Investment Advisors LLC acquired a new stake in Unusual Machines during the second quarter valued at approximately $1,446,000.

About Unusual Machines

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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