Wrap Technologies (NASDAQ:WRAP) Trading Up 5.8% - Time to Buy?

Key Points

• Shares of Wrap Technologies (NASDAQ:WRAP) increased by 5.8% on Monday, reaching a trading high of $1.82, with a significant 82% surge in trading volume compared to the average.
• The stock was downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating potential concerns about future performance.
• Major shareholders have recently sold portions of their holdings, with CEO Scot Cohen selling nearly 97,000 shares and insider Elwood G. Norris selling 30,000 shares, suggesting a decrease in insider confidence.

Wrap Technologies, Inc. (NASDAQ:WRAP - Get Free Report) shot up 5.8% during mid-day trading on Monday . The company traded as high as $1.82 and last traded at $1.81. 544,535 shares were traded during mid-day trading, an increase of 82% from the average session volume of 299,095 shares. The stock had previously closed at $1.71.

Wall Street Analyst Weigh In

Separately, Wall Street Zen downgraded shares of Wrap Technologies from a "hold" rating to a "sell" rating in a report on Saturday, August 16th.

Wrap Technologies Stock Performance

The firm has a market cap of $104.18 million, a price-to-earnings ratio of -10.25 and a beta of 1.35. The stock's 50 day simple moving average is $1.45 and its 200-day simple moving average is $1.58.

Wrap Technologies (NASDAQ:WRAP - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The company reported ($0.07) earnings per share for the quarter. Wrap Technologies had a negative return on equity of 175.85% and a negative net margin of 285.43%.The business had revenue of $1.01 million during the quarter.

Insider Transactions at Wrap Technologies

In related news, CEO Scot Cohen sold 96,989 shares of the stock in a transaction on Friday, August 29th. The shares were sold at an average price of $1.31, for a total transaction of $127,055.59. Following the sale, the chief executive officer directly owned 6,275,356 shares of the company's stock, valued at approximately $8,220,716.36. This represents a 1.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 18.57% of the company's stock.

Hedge Funds Weigh In On Wrap Technologies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. lifted its stake in shares of Wrap Technologies by 13.6% in the second quarter. Osaic Holdings Inc. now owns 53,708 shares of the company's stock worth $84,000 after buying an additional 6,442 shares in the last quarter. XTX Topco Ltd acquired a new stake in Wrap Technologies during the second quarter worth about $32,000. Thompson Davis & CO. Inc. acquired a new stake in Wrap Technologies during the second quarter worth about $103,000. Finally, Jane Street Group LLC acquired a new stake in Wrap Technologies during the fourth quarter worth about $70,000. 8.82% of the stock is owned by hedge funds and other institutional investors.

About Wrap Technologies

Wrap Technologies, Inc, a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet.