Tron (NASDAQ:TRON) Trading Down 10.7% - Time to Sell?

Key Points

• Tron (NASDAQ:TRON) shares fell by 10.7% on Friday, trading as low as $7.56 with a volume decline of 55% from its average daily volume.
• Wall Street analysts have recently upgraded Tron to a "hold" rating, despite the company's negative earnings report showing a loss of ($0.04) per share.
• Insider transactions included the sale of 322,000 shares by insiders, representing significant reductions in their ownership stakes, which raises potential concerns about the company's future outlook.

Tron Inc. (NASDAQ:TRON - Get Free Report)'s share price fell 10.7% during mid-day trading on Friday . The company traded as low as $7.56 and last traded at $7.57. 2,492,941 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 5,515,229 shares. The stock had previously closed at $8.48.

Analyst Ratings Changes

Separately, Wall Street Zen upgraded shares of Tron to a "hold" rating in a research note on Saturday, June 21st.

Tron Trading Down 2.8%

The company has a quick ratio of 3.59, a current ratio of 5.24 and a debt-to-equity ratio of 0.05. The firm's fifty day moving average price is $9.60 and its 200 day moving average price is $7.50.

Tron (NASDAQ:TRON - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported ($0.04) earnings per share for the quarter. Tron had a negative return on equity of 78.96% and a negative net margin of 74.56%. The business had revenue of $1.09 million during the quarter.

Insider Buying and Selling at Tron

In related news, CEO Richard A. Miller sold 100,000 shares of the firm's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $11.19, for a total value of $1,119,000.00. Following the completion of the sale, the chief executive officer owned 600,000 shares in the company, valued at $6,714,000. This trade represents a 14.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Douglas O. Mckinnon sold 122,000 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $7.39, for a total transaction of $901,580.00. Following the transaction, the chief financial officer owned 316,388 shares of the company's stock, valued at $2,338,107.32. This trade represents a 27.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 322,000 shares of company stock valued at $2,961,580. Insiders own 14.80% of the company's stock.

Institutional Investors Weigh In On Tron

A hedge fund recently bought a new stake in Tron stock. Anson Funds Management LP bought a new position in shares of Tron Inc. (NASDAQ:TRON - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm bought 683,102 shares of the company's stock, valued at approximately $430,000. Anson Funds Management LP owned about 6.56% of Tron as of its most recent SEC filing. Hedge funds and other institutional investors own 28.03% of the company's stock.

About Tron

SRM Entertainment, Inc designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.