Traders Purchase Large Volume of Call Options on Eightco (NASDAQ:ORBS)

Key Points

• Traders bought 10,019 call options on ORBS Monday — a 244% jump versus typical call volume — while shares traded massively (62,037,700) and rose to $1.15 intraday.
• Eightco's board approved a $125 million share repurchase plan that could buy up to 34.4% of outstanding stock, a move that typically signals management views the shares as undervalued.
• Despite heavy options activity and the buyback, analysts maintain a consensus "Sell" rating and institutional ownership is low at 12.85%, though some firms (notably Mozayyx Management) initiated sizable new positions.

Eightco Holdings Inc. (NASDAQ:ORBS - Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock traders bought 10,019 call options on the company. This is an increase of 244% compared to the typical volume of 2,910 call options.

Wall Street Analysts Forecast Growth

ORBS has been the topic of several research analyst reports. Wall Street Zen lowered shares of Eightco from a "hold" rating to a "sell" rating in a research report on Friday, November 21st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Eightco in a report on Monday, December 29th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, Eightco has a consensus rating of "Sell".

Eightco Stock Performance

Shares of ORBS traded up $0.32 during mid-day trading on Monday, hitting $1.15. 62,037,700 shares of the company's stock were exchanged, compared to its average volume of 11,983,959. Eightco has a 52 week low of $0.74 and a 52 week high of $83.12. The stock has a 50-day moving average of $1.34. The stock has a market capitalization of $226.52 million, a price-to-earnings ratio of -0.83 and a beta of 2.38.

Eightco announced that its board has authorized a share repurchase plan on Monday, December 29th that authorizes the company to buyback $125.00 million in shares. This buyback authorization authorizes the company to repurchase up to 34.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ORBS. PEAK6 LLC acquired a new position in Eightco in the fourth quarter valued at about $26,000. Mozayyx Management LLC acquired a new stake in Eightco during the fourth quarter worth about $28,438,000. Aristides Capital LLC bought a new position in Eightco in the 4th quarter valued at about $136,000. Invesco Ltd. bought a new position in Eightco in the 4th quarter valued at about $37,000. Finally, XTX Topco Ltd acquired a new position in shares of Eightco in the 4th quarter valued at approximately $51,000. Institutional investors and hedge funds own 12.85% of the company's stock.

About Eightco

Eightco Holdings Inc provides bitcoin mining equipment and co-location services. It also manufactures and sells container boards, corrugated products, and specialty paper products in North America. The company was incorporated in 1966 and is headquartered in Safety Harbor, Florida.

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