Unusual Machines (NYSEAMERICAN:UMAC) Trading Down 8.5% - Should You Sell?

Key Points

• Unusual Machines shares fell 8.5% on Friday, trading as low as $19.59 after closing at $21.52 the prior day, on lighter-than-average volume.
• Despite the pullback, Wall Street remains largely bullish: the stock has an average rating of “Buy” with an average price target of $34.80, and several analysts have recently raised their targets.
• The company’s latest earnings showed mixed results, with EPS of $0.21 missing estimates while revenue of $8.1 million beat expectations; insiders also sold shares recently, including the CFO and president.

Shares of Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) dropped 8.5% on Friday . The stock traded as low as $19.59 and last traded at $19.69. 1,183,940 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 5,006,735 shares. The stock had previously closed at $21.52.

Wall Street Analyst Weigh In

A number of research analysts have commented on UMAC shares. Roth Capital increased their price objective on Unusual Machines to $40.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Needham & Company LLC raised their price target on Unusual Machines from $22.00 to $30.00 and gave the company a "buy" rating in a report on Thursday, June 11th. HC Wainwright initiated coverage on Unusual Machines in a research report on Wednesday, July 15th. They issued a "buy" rating and a $42.00 price objective for the company. Finally, National Bank Financial set a $42.00 price objective on Unusual Machines in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Unusual Machines presently has an average rating of "Buy" and an average target price of $34.80.

Unusual Machines Price Performance

The business's 50 day simple moving average is $21.60 and its 200-day simple moving average is $17.30. The stock has a market capitalization of $951.98 million, a P/E ratio of -47.43 and a beta of 14.84.

Unusual Machines (NYSEAMERICAN:UMAC - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported $0.21 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.15). Unusual Machines had a negative net margin of 32.71% and a negative return on equity of 11.83%. The business had revenue of $8.10 million for the quarter, compared to the consensus estimate of $5.54 million. Research analysts anticipate that Unusual Machines, Inc. will post -0.72 earnings per share for the current fiscal year.

Insider Activity at Unusual Machines

In other Unusual Machines news, CFO Brian Joseph Hoff sold 150,000 shares of the stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $17.71, for a total value 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Andrew Ross Camden sold 100,000 shares of the firm's stock in a transaction dated Thursday, June 4th. The stock was 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 in the company, valued at approximately $7,414,837.50. This trade represents a 28.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 280,000 shares of company stock worth $6,477,200. 7.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in shares of Unusual Machines by 13.3% during the third quarter. Vanguard Group Inc. now owns 1,162,795 shares of the company's stock worth $17,558,000 after purchasing an additional 136,696 shares in the last quarter. Granahan Investment Management LLC bought a new stake in shares of Unusual Machines in the 4th quarter valued at $14,708,000. State Street Corp raised its stake in Unusual Machines by 698.4% during the 4th quarter. State Street Corp now owns 966,184 shares of the company's stock worth $12,309,000 after buying an additional 845,173 shares during the period. Wasatch Advisors LP acquired a new stake in Unusual Machines during the 2nd quarter worth $8,087,000. Finally, Geode Capital Management LLC lifted its holdings in Unusual Machines by 29.5% during the fourth quarter. Geode Capital Management LLC now owns 359,883 shares of the company's stock worth $4,587,000 after acquiring an additional 81,883 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.

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