Wrap Technologies (NASDAQ:WRAP) Stock Falls 7.6% - What's Next?

Key Points

• Wrap Technologies shares fell 7.6% to $1.34 in Monday trading, with volume rising 9% above the average. The company has a $75 million market capitalization, and its stock remains below its 50-day moving average.
• Analyst sentiment remains negative: the consensus rating is “Sell,” although Wall Street Zen recently upgraded the stock to “Hold.”
• Despite beating quarterly revenue and EPS estimates, Wrap Technologies reported a 205.1% negative net margin and a 101.24% negative return on equity. A company director purchased 100,000 shares, while insiders collectively own 33.26% of the stock.

Shares of Wrap Technologies, Inc. (NASDAQ:WRAP - Get Free Report) dropped 7.6% on Monday. The stock traded as low as $1.34 and last traded at $1.34. Approximately 551,779 shares were traded during mid-day trading, an increase of 9% from the average daily volume of 506,567 shares. The stock had previously closed at $1.45.

Analyst Ratings Changes

Several equities analysts have recently commented on WRAP shares. Wall Street Zen upgraded Wrap Technologies from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Wrap Technologies in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock currently has a consensus rating of "Sell".

Wrap Technologies Stock Down 7.6%

The stock has a market capitalization of $75.04 million, a P/E ratio of -4.96 and a beta of 1.31. The stock's 50 day moving average price is $1.67 and its 200-day moving average price is $1.56.

Wrap Technologies (NASDAQ:WRAP - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($0.04) EPS for the quarter, topping analysts' consensus estimates of ($0.10) by $0.06. The company had revenue of $2.05 million during the quarter, compared to the consensus estimate of $1.61 million. Wrap Technologies had a negative net margin of 205.10% and a negative return on equity of 101.24%.

Insider Activity at Wrap Technologies

In related news, Director John Shulman acquired 100,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 8th. The stock was purchased at an average cost of $1.10 per share, for a total transaction of $110,000.00. Following the purchase, the director directly owned 199,037 shares of the company's stock, valued at $218,940.70. This trade represents a 100.97% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 33.26% of the company's stock.

Institutional Investors Weigh In On Wrap Technologies

A number of institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in Wrap Technologies in the second quarter worth about $734,000. Squarepoint Ops LLC purchased a new stake in shares of Wrap Technologies during the second quarter valued at about $35,000. Royal Capital Wealth Management LLC bought a new stake in shares of Wrap Technologies in the 2nd quarter valued at about $115,000. Finally, Renaissance Technologies LLC boosted its holdings in shares of Wrap Technologies by 101.9% in the 1st quarter. Renaissance Technologies LLC now owns 316,762 shares of the company's stock valued at $488,000 after buying an additional 159,862 shares in the last quarter. Institutional investors own 8.82% of the company's stock.

About Wrap Technologies

Wrap Technologies, Inc NASDAQ: WRAP develops public-safety technology designed to help law enforcement and other authorized personnel manage difficult encounters with reduced reliance on traditional physical force. Its products are intended for use in situations involving uncooperative, combative, or potentially dangerous individuals.

The company's principal product is BolaWrap, a handheld remote restraint device that deploys a Kevlar tether to entangle a subject's legs or arms from a distance.

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