Unusual Machines Sees Unusually Large Options Volume (NYSEAMERICAN:UMAC)

Key Points

• Options activity surged: Traders bought 16,309 UMAC call options, about 38% above average volume. The stock jumped $6.16 to $33.40 on volume well above its daily average.
• Analysts remain bullish: Recent firms assigned Buy or Overweight ratings, with price targets ranging from $38 to $42. MarketBeat’s consensus rating is “Buy,” with an average target of $37.
• Insiders have been selling: Company insiders sold 280,000 shares worth approximately $6.48 million over the past 90 days, including notable sales by a director and the CFO.

Unusual Machines, Inc. (NYSEAMERICAN:UMAC - Get Free Report) was the recipient of unusually large options trading activity on Friday. Traders bought 16,309 call options on the stock. This is an increase of approximately 38% compared to the average volume of 11,811 call options.

Unusual Machines Price Performance

NYSEAMERICAN:UMAC traded up $6.16 on Friday, reaching $33.40. 12,192,458 shares of the company's stock were exchanged, compared to its average volume of 4,968,956. The firm has a market cap of $1.67 billion, a price-to-earnings ratio of -128.46 and a beta of 14.92. The stock has a fifty day simple moving average of $22.08 and a 200-day simple moving average of $18.04. Unusual Machines has a 52 week low of $7.24 and a 52 week high of $34.93.

Unusual Machines (NYSEAMERICAN:UMAC - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.16) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.16). The business had revenue of $16.72 million during the quarter, compared to analyst estimates of $9.20 million. Unusual Machines had a negative net margin of 20.29% and a negative return on equity of 7.62%. As a group, sell-side analysts predict that Unusual Machines will post -0.72 EPS for the current year.

Insiders Place Their Bets

In related news, Director Jeffrey M. Thompson sold 15,000 shares of Unusual Machines stock in a transaction on Friday, June 5th. The stock was sold at an average price of $26.96, for a total transaction of $404,400.00. Following the sale, the director directly owned 4,794,392 shares in the company, valued at approximately $129,256,808.32. This trade represents a 0.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Brian Joseph Hoff sold 150,000 shares of the business's stock in a transaction on 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 completion of the transaction, the chief financial officer directly owned 352,650 shares in the company, valued at approximately $6,245,431.50. This represents a 29.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 280,000 shares of company stock valued at $6,477,200 in the last 90 days. 7.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Granahan Investment Management LLC bought a new stake in shares of Unusual Machines during the fourth quarter valued at about $14,708,000. State Street Corp boosted its position in shares of Unusual Machines by 698.4% in the fourth quarter. State Street Corp now owns 966,184 shares of the company's stock valued at $12,309,000 after acquiring an additional 845,173 shares during the period. Wasatch Advisors LP purchased a new position in Unusual Machines during the second quarter valued at approximately $8,087,000. Alyeska Investment Group L.P. purchased a new position in Unusual Machines during the fourth quarter valued at approximately $2,521,000. Finally, Sei Investments Co. bought a new stake in Unusual Machines during the 3rd quarter worth approximately $2,652,000.

Analysts Set New Price Targets

A number of research firms recently issued reports on UMAC. Piper Sandler began coverage on shares of Unusual Machines in a report on Wednesday. They set an "overweight" rating and a $38.00 price objective for the company. Roth Capital raised their price target on shares of Unusual Machines to $40.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. National Bank Financial set a $42.00 price objective on Unusual Machines in a research note on Wednesday, July 15th. Needham & Company LLC increased their price objective on Unusual Machines from $30.00 to $40.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Finally, HC Wainwright assumed coverage on Unusual Machines in a research report on Wednesday, July 15th. They issued a "buy" rating and a $42.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Unusual Machines has a consensus rating of "Buy" and an average target price of $37.00.

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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