Safe Pro Group (NASDAQ:SPAI) Announces Earnings Results

Key Points

• Earnings miss: Safe Pro reported ($0.15) EPS vs. ($0.10) expected (a $0.05 miss), showing a deeply negative net margin (968.74%) and ROE (-280.18%), though revenue of $0.23M topped estimates of $0.10M.
• $3.0 million buyback approved: The board authorized repurchases of up to $3.0M (about 4.4% of shares), a move typically signaling management views the stock as undervalued.
• Stock and analyst picture: Shares rose ~3.4% to $4.14 (market cap ≈ $86.7M) amid mixed analyst coverage — consensus "Moderate Buy" with an average price target of $10.

Safe Pro Group (NASDAQ:SPAI - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.05), Zacks reports. Safe Pro Group had a negative net margin of 968.74% and a negative return on equity of 280.18%. The company had revenue of $0.23 million during the quarter, compared to analysts' expectations of $0.10 million.

Safe Pro Group Stock Up 3.4%

SPAI stock traded up $0.14 during midday trading on Thursday, reaching $4.14. 71,651 shares of the company were exchanged, compared to its average volume of 351,118. The company has a market cap of $86.73 million, a price-to-earnings ratio of -4.92 and a beta of 3.90. The company has a debt-to-equity ratio of 0.02, a quick ratio of 7.16 and a current ratio of 7.60. Safe Pro Group has a 1-year low of $1.47 and a 1-year high of $9.16. The stock's 50-day simple moving average is $4.63 and its 200 day simple moving average is $5.32.

Safe Pro Group declared that its Board of Directors has approved a stock buyback plan on Thursday, December 18th that authorizes the company to repurchase $3.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 4.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SPAI. Cresset Asset Management LLC lifted its position in Safe Pro Group by 4.6% in the second quarter. Cresset Asset Management LLC now owns 144,929 shares of the company's stock valued at $399,000 after acquiring an additional 6,346 shares during the last quarter. Barclays PLC purchased a new position in shares of Safe Pro Group during the fourth quarter worth about $44,000. Renaissance Technologies LLC grew its holdings in shares of Safe Pro Group by 20.0% during the fourth quarter. Renaissance Technologies LLC now owns 77,500 shares of the company's stock worth $322,000 after purchasing an additional 12,900 shares during the last quarter. Price T Rowe Associates Inc. MD acquired a new stake in shares of Safe Pro Group during the fourth quarter worth about $65,000. Finally, Tudor Investment Corp ET AL lifted its holdings in shares of Safe Pro Group by 9.1% in the 4th quarter. Tudor Investment Corp ET AL now owns 277,285 shares of the company's stock valued at $1,154,000 after purchasing an additional 23,018 shares during the last quarter.

Analysts Set New Price Targets

Several analysts recently weighed in on SPAI shares. Zacks Research cut shares of Safe Pro Group from a "hold" rating to a "strong sell" rating in a report on Thursday, February 5th. Weiss Ratings reissued a "sell (d-)" rating on shares of Safe Pro Group in a research report on Thursday, January 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $10.00.

Safe Pro Group Company Profile

Safe Pro Group, Inc engages in the provision and acquisition of security and protection products. Its products include Artificial Intelligence (AI) and Machine Learning (ML) software technology and photogrammetry analysis tools, bullet and blast resistant personal protection equipment, and aerial managed services and mission-critical uncrewed solutions. The firm operates through the following segments: Safe-PRO USA, Airborne Response, and Safe Pro AI. The company was founded by Daniyel Erdberg on December 15, 2021 and is headquartered in Aventura, FL.

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