Stock Traders Buy High Volume of Call Options on Ocean Power Technologies (NASDAQ:OPTT)

Key Points

• Investors bought a surge of 31,399 call options on Ocean Power Technologies on Monday, a 922% increase over typical call volume, indicating unusually heavy bullish options activity.
• The stock jumped 32.3% to $0.62 on massive volume (~98.99 million shares vs. an average of ~21.16 million) after the options activity, with a market cap around $120 million.
• While analysts are cautiously optimistic—HC Wainwright initiated coverage with a Buy and $1.50 target and the consensus rating is "Moderate Buy"—the company remains unprofitable with negative EPS and margins, and institutional ownership is about 11.93%.

Ocean Power Technologies, Inc. (NASDAQ:OPTT - Get Free Report) saw some unusual options trading on Monday. Investors bought 31,399 call options on the company. This represents an increase of 922% compared to the typical volume of 3,073 call options.

Hedge Funds Weigh In On Ocean Power Technologies

Several hedge funds have recently modified their holdings of the company. Abich Financial Wealth Management LLC bought a new stake in Ocean Power Technologies in the third quarter worth about $25,000. JPMorgan Chase & Co. boosted its holdings in Ocean Power Technologies by 31,555.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 68,693 shares of the energy company's stock valued at $33,000 after purchasing an additional 68,476 shares during the period. SBI Securities Co. Ltd. grew its position in Ocean Power Technologies by 29.4% during the second quarter. SBI Securities Co. Ltd. now owns 374,187 shares of the energy company's stock worth $178,000 after buying an additional 84,920 shares in the last quarter. Virtu Financial LLC purchased a new position in shares of Ocean Power Technologies during the third quarter worth about $73,000. Finally, Essex Investment Management Co. LLC bought a new position in shares of Ocean Power Technologies in the 3rd quarter worth $103,000. Institutional investors own 11.93% of the company's stock.

Ocean Power Technologies Trading Up 32.3%

NASDAQ OPTT traded up $0.15 during trading hours on Monday, hitting $0.62. The company's stock had a trading volume of 98,988,992 shares, compared to its average volume of 21,164,148. The company has a market capitalization of $119.90 million, a PE ratio of -1.91 and a beta of 2.39. The company's 50-day simple moving average is $0.40 and its two-hundred day simple moving average is $0.49. Ocean Power Technologies has a 52 week low of $0.29 and a 52 week high of $0.98.

Ocean Power Technologies (NASDAQ:OPTT - Get Free Report) last issued its quarterly earnings data on Monday, December 15th. The energy company reported ($0.06) earnings per share for the quarter. Ocean Power Technologies had a negative net margin of 304.91% and a negative return on equity of 97.03%. During the same period in the prior year, the firm earned ($0.04) EPS.

Wall Street Analysts Forecast Growth

Separately, HC Wainwright assumed coverage on shares of Ocean Power Technologies in a report on Thursday, December 18th. They set a "buy" rating and a $1.50 price target on the stock. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Ocean Power Technologies currently has an average rating of "Moderate Buy" and an average target price of $1.50.

About Ocean Power Technologies

Ocean Power Technologies, Inc NASDAQ: OPTT is a renewable energy company that develops and commercializes systems to harness clean, reliable power from ocean waves. Headquartered in Pennington, New Jersey, the company's core focus is on the design, engineering and deployment of its proprietary PowerBuoy® wave energy converter. By capturing the mechanical motion of surface waves and converting it into electrical energy, Ocean Power Technologies aims to deliver environmentally sustainable power solutions for offshore and remote operations.

The company's primary product line, the PowerBuoy®, employs a point‐absorber design in which a floating buoy moves relative to a seabed‐anchored spar.

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