Unusual Machines (NYSEAMERICAN:UMAC) Trading 8.2% Higher - Still a Buy?

Key Points

• Unusual Machines shares rose 8.2% to about $25.85, despite trading volume running 74% below the average session level. The stock has a $1.29 billion market capitalization and unusually high beta of 14.92, indicating significant volatility.
• Analysts are broadly bullish: six rate the stock Buy and one rates it Hold, producing a consensus “Moderate Buy” rating and a $37 average price target. Recent targets range from $40 to $42.
• The company met its quarterly EPS estimate with a loss of $0.16 but reported $16.72 million in revenue, well above the $9.20 million consensus. However, profitability remains weak, with a negative net margin, while insiders sold roughly $5.1 million of stock over the past 90 days.

Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) shot up 8.2% during mid-day trading on Thursday . The company traded as high as $25.88 and last traded at $25.85. Approximately 1,277,114 shares were traded during trading, a decline of 74% from the average session volume of 4,974,620 shares. The stock had previously closed at $23.89.

Analysts Set New Price Targets

Several research firms have weighed in on UMAC. HC Wainwright started coverage on shares of Unusual Machines in a report on Wednesday, July 15th. They issued a "buy" rating and a $42.00 target price on the stock. National Bank Financial set a $42.00 price target on shares of Unusual Machines in a report on Wednesday, July 15th. Roth Capital upped their price objective on shares of Unusual Machines to $40.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Needham & Company LLC raised their price objective on Unusual Machines from $30.00 to $40.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, ThinkEquity reiterated a "buy" rating on shares of Unusual Machines in a report on Monday, August 17th. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, Unusual Machines has a consensus rating of "Moderate Buy" and a consensus target price of $37.00.

Unusual Machines Price Performance

The stock's 50 day simple moving average is $22.59 and its two-hundred day simple moving average is $18.88. The stock has a market cap of $1.29 billion, a P/E ratio of -99.69 and a beta of 14.92.

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

Insider Transactions at Unusual Machines

In other Unusual Machines news, Director Jeffrey M. Thompson sold 15,000 shares of Unusual Machines stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $26.96, for a total value of $404,400.00. Following the sale, the director owned 4,794,392 shares of the company's stock, valued at $129,256,808.32. This trade represents a 0.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CRO Stacy Rochelle Wright sold 27,500 shares of Unusual Machines stock in a transaction dated 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 directly owned 68,750 shares in the company, valued at $1,787,500. This represents a 28.57% 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. Insiders have sold a total of 178,538 shares of company stock worth $5,082,898 in the last 90 days. Company insiders own 7.50% of the company's stock.

Institutional Investors Weigh In On Unusual Machines

Institutional investors have recently bought and sold shares of the company. Geode Capital Management LLC boosted its position in Unusual Machines by 89.1% during the 2nd quarter. Geode Capital Management LLC now owns 222,927 shares of the company's stock worth $1,911,000 after acquiring an additional 105,020 shares during the last quarter. Jump Financial LLC bought a new stake in shares of Unusual Machines in the second quarter worth $1,251,000. Bank of America Corp DE lifted its position in shares of Unusual Machines by 7,372.6% in the second quarter. Bank of America Corp DE now owns 7,099 shares of the company's stock worth $61,000 after purchasing an additional 7,004 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in Unusual Machines by 4,639.7% during the second quarter. Tower Research Capital LLC TRC now owns 13,366 shares of the company's stock worth $115,000 after purchasing an additional 13,084 shares during the last quarter. Finally, Vanguard Group Inc. boosted its holdings in Unusual Machines by 13.3% during the third quarter. Vanguard Group Inc. now owns 1,162,795 shares of the company's stock worth $17,558,000 after purchasing an additional 136,696 shares during the last quarter.

Unusual Machines Company Profile

Unusual Machines, Inc designs, manufactures, and sells ultra-low latency video goggles for drone pilots. It operates a drone-focused e-commerce marketplace. The company serves drone pilots, hobbyists, and recreational services. The company was formerly known as AerocarveUS Corporation and changed its name to Unusual Machines, Inc in July 2022. Unusual Machines, Inc was incorporated in 2019 and is based in Orlando, Florida.

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