Unusual Machines (NYSEAMERICAN:UMAC) Shares Gap Down - Time to Sell?

Key Points

• Unusual Machines shares fell 7.2%, opening at $32.55 after previously closing at $34.06 and later trading near $30.80. The company has a $1.58 billion market capitalization, a negative P/E ratio, and unusually high beta of 14.92.
• Despite the decline, analyst sentiment remains positive: six analysts rate the stock a Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of $37.
• Quarterly revenue of $16.72 million exceeded the $9.20 million consensus estimate, while EPS of negative $0.16 matched expectations. However, insiders sold 280,000 shares worth $6.48 million over the past three months, including sizable sales by the president and CFO.

Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $34.06, but opened at $32.55. Unusual Machines shares last traded at $30.80, with a volume of 1,952,538 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. ThinkEquity restated a "buy" rating on shares of Unusual Machines in a research note on Monday. Needham & Company LLC lifted their target price on Unusual Machines from $30.00 to $40.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Roth Capital boosted their price target on Unusual Machines to $40.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. HC Wainwright began coverage on Unusual Machines in a research report on Wednesday, July 15th. They issued a "buy" rating and a $42.00 price target for the company. Finally, National Bank Financial set a $42.00 price objective on Unusual Machines in a research note on Wednesday, July 15th. Six analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $37.00.

Unusual Machines Trading Down 7.2%

The stock has a 50 day simple moving average of $22.23 and a 200-day simple moving average of $18.17. The firm has a market cap of $1.58 billion, a PE ratio of -121.58 and a beta of 14.92.

Unusual Machines (NYSEAMERICAN:UMAC - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.16) EPS for the quarter, meeting the consensus estimate of ($0.16). The business had revenue of $16.72 million for the quarter, compared to the consensus estimate of $9.20 million. Unusual Machines had a negative return on equity of 7.62% and a negative net margin of 20.29%. On average, equities research analysts expect that Unusual Machines, Inc. will post -0.72 EPS for the current year.

Insiders Place Their Bets

In other news, President Andrew Ross Camden sold 100,000 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $30.05, for a total value of $3,005,000.00. Following the transaction, the president owned 246,750 shares of the company's stock, valued at approximately $7,414,837.50. The trade was a 28.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Brian Joseph Hoff sold 150,000 shares of the company's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $17.71, for a total transaction of $2,656,500.00. Following the transaction, the chief financial officer owned 352,650 shares of the company's stock, valued at approximately $6,245,431.50. This represents a 29.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 280,000 shares of company stock worth $6,477,200 in the last three months. 7.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp bought a new stake in shares of Unusual Machines in the second quarter worth about $2,999,000. Wasatch Advisors LP purchased a new position in Unusual Machines during the 2nd quarter valued at approximately $8,087,000. IFC & Insurance Marketing Inc. increased its stake in Unusual Machines by 30.7% in the 2nd quarter. IFC & Insurance Marketing Inc. now owns 14,140 shares of the company's stock worth $315,000 after acquiring an additional 3,319 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Unusual Machines by 213.2% during the 1st quarter. Bank of America Corp DE now owns 38,963 shares of the company's stock worth $483,000 after acquiring an additional 26,524 shares in the last quarter. Finally, Royal Bank of Canada grew its holdings in shares of Unusual Machines by 27.8% in the first quarter. Royal Bank of Canada now owns 68,382 shares of the company's stock valued at $848,000 after purchasing an additional 14,895 shares in the last quarter.

Unusual Machines Company Profile

Unusual Machines, Inc designs, manufactures, and sells ultra-low latency video goggles for drone pilots. It operates a drone-focused e-commerce marketplace. The company serves drone pilots, hobbyists, and recreational services. The company was formerly known as AerocarveUS Corporation and changed its name to Unusual Machines, Inc in July 2022. Unusual Machines, Inc was incorporated in 2019 and is based in Orlando, Florida.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source