Webull (NASDAQ:BULL) Shares Gap Up - Still a Buy?

Key Points

• Webull shares opened higher, rising from a prior close of $5.95 to $6.22 and last trading around $6.16, while call-option activity surged roughly 62% above typical levels.
• The company reported strong operating results, with quarterly revenue up 51.2% year over year to $198.8 million and earnings of $0.12 per share versus the $0.01 consensus estimate. Analysts remain mixed but generally see upside, with an average rating of “Hold” and a $10 price target.
• China-related governance and data-security concerns remain major risks. Congressional allegations, company disputes, regulatory uncertainty and multiple securities-fraud investigations could increase legal, reputational and compliance costs.

Webull Corporation (NASDAQ:BULL - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $5.95, but opened at $6.22. Webull shares last traded at $6.1550, with a volume of 5,195,707 shares.

Webull News Roundup

Here are the key news stories impacting Webull this week:

• Positive Sentiment: Analyst remains bullish: Rosenblatt Securities lowered its price target from $15 to $12 but maintained a “buy” rating. The revised target still represents substantial potential upside, suggesting the firm views the recent selloff as excessive.
• Positive Sentiment: Elevated call-option activity: Investors purchased more than 100,000 Webull call options, approximately 62% above typical volume. This indicates speculative bullish interest, although options activity can also increase volatility.
• Neutral Sentiment: Strong recent operating results: Webull’s latest reported quarter included $198.8 million in revenue, up 51.2% year over year, and earnings of $0.12 per share versus analyst expectations of $0.01. However, those results have been overshadowed by the governance and national-security controversy.
• Negative Sentiment: China-ties concerns remain the primary overhang: A bipartisan House committee report alleged that Webull’s ownership structure, workforce, infrastructure, financing, compliance systems and cross-border data practices are structurally connected to China. Critics also questioned whether sensitive U.S. customer information could be accessed by Chinese authorities. Webull has rejected the findings as inaccurate. Crypto platform Webull is getting slammed over its alleged China ties
• Negative Sentiment: Regulatory and litigation risk is rising: Multiple law firms have announced investigations or securities-fraud class actions alleging that Webull misrepresented its U.S. identity, data protections and China-related risks. These announcements could increase legal costs, reputational damage and uncertainty over potential government action. Investor Alert: Robbins LLP Informs Investors of the Webull Corporation Class Action Lawsuit

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Wall Street Zen upgraded shares of Webull from a "sell" rating to a "hold" rating in a research report on Saturday, August 22nd. Rosenblatt Securities cut their price target on Webull from $15.00 to $12.00 and set a "buy" rating for the company in a research note on Friday. Weiss Ratings raised Webull from a "sell (d-)" rating to a "sell (d)" rating in a report on Monday, September 14th. Finally, Scotiabank upgraded Webull from a "sector perform" rating to a "sector outperform" rating and set a $9.00 price target on the stock in a research report on Friday. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $10.00.

Webull Trading Up 6.1%

The company has a market cap of $3.36 billion, a price-to-earnings ratio of 78.07 and a beta of 0.64. The stock's fifty day simple moving average is $8.13 and its 200 day simple moving average is $7.11.

Webull (NASDAQ:BULL - Get Free Report) last issued its earnings results on Wednesday, August 19th. The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.11. The business had revenue of $198.83 million for the quarter. Webull had a return on equity of 5.95% and a net margin of 6.26%.The business's quarterly revenue was up 51.2% on a year-over-year basis. On average, analysts predict that Webull Corporation will post 0.14 EPS for the current year.

Insider Buying and Selling

In other Webull news, CFO Haichen Wang sold 55,000 shares of the business's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $8.98, for a total transaction of $493,900.00. Following the transaction, the chief financial officer owned 772,046 shares of the company's stock, valued at approximately $6,932,973.08. The trade was a 6.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, President Anthony Michael Denier sold 53,848 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $8.83, for a total value of $475,477.84. Following the completion of the sale, the president owned 2,332,295 shares of the company's stock, valued at approximately $20,594,164.85. The trade was a 2.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 320,659 shares of company stock worth $2,781,375. 35.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Webull

Institutional investors and hedge funds have recently bought and sold shares of the company. Tidal Investments LLC increased its holdings in shares of Webull by 148.8% during the 2nd quarter. Tidal Investments LLC now owns 2,741,993 shares of the company's stock worth $17,878,000 after buying an additional 1,640,067 shares during the last quarter. Renaissance Technologies LLC increased its stake in Webull by 321.3% during the first quarter. Renaissance Technologies LLC now owns 1,535,199 shares of the company's stock worth $7,369,000 after acquiring an additional 1,170,799 shares during the last quarter. Greenland Capital Management LP raised its position in Webull by 0.3% in the second quarter. Greenland Capital Management LP now owns 1,158,725 shares of the company's stock valued at $2,225,000 after purchasing an additional 2,912 shares during the period. Bank of New York Mellon Corp raised its position in Webull by 1.7% in the first quarter. Bank of New York Mellon Corp now owns 748,970 shares of the company's stock valued at $3,595,000 after purchasing an additional 12,828 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund lifted its stake in shares of Webull by 112.6% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 738,600 shares of the company's stock valued at $3,545,000 after purchasing an additional 391,236 shares during the last quarter. 92.48% of the stock is currently owned by institutional investors and hedge funds.

Webull Company Profile

Webull Corporation NASDAQ: BULL is a financial technology company that operates a digital investment platform and online brokerage. Its services are designed for self-directed investors and provide access to market information, research tools, charting and portfolio-management features through mobile and web-based applications.

Through its brokerage businesses, Webull offers trading in products that may include U.S.-listed stocks, exchange-traded funds, options and fractional shares, along with retirement accounts, margin services and other investing features, subject to availability and regulatory requirements.

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