Traders Buy Large Volume of EHang Call Options (NASDAQ:EH)

EHang Holdings Limited Unsponsored ADR (NASDAQ:EH) was the target of some unusual options trading activity on Monday. Investors bought 3,686 call options on the company. This represents an increase of approximately 55% compared to the typical volume of 2,373 call options.

Analyst Ratings Changes

A number of research firms have recently weighed in on EH. Morgan Stanley set a $5.30 target price on EHang and gave the company an “equal weight” rating in a report on Tuesday, September 15th. UBS Group downgraded EHang from a “buy” rating to a “neutral” rating and set a $11.10 price target for the company. in a report on Thursday, June 4th. Weiss Ratings cut EHang from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, July 14th. The Goldman Sachs Group lowered shares of EHang from a “buy” rating to a “neutral” rating and set a $7.30 target price for the company. in a research note on Tuesday, July 14th. Finally, JPMorgan Chase & Co. reissued an “underweight” rating and set a $4.40 price target (down from $9.70) on shares of EHang in a research report on Monday, July 6th. Five research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, EHang currently has a consensus rating of “Reduce” and an average target price of $6.70.

EHang Stock Performance

EHang stock traded up $0.05 during trading on Monday, hitting $4.63. The stock had a trading volume of 136,261 shares, compared to its average volume of 801,372. The stock’s 50 day moving average is $5.10 and its two-hundred day moving average is $7.87. EHang has a 1 year low of $4.31 and a 1 year high of $20.20. The stock has a market cap of $347.51 million, a price-to-earnings ratio of -7.47 and a beta of 1.17. The company has a quick ratio of 1.65, a current ratio of 1.84 and a debt-to-equity ratio of 0.13.

EHang (NASDAQ:EH) last released its earnings results on Friday, August 14th. The company reported ($0.11) earnings per share (EPS) for the quarter. The firm had revenue of $11.46 million during the quarter. EHang had a negative return on equity of 32.73% and a negative net margin of 74.74%. As a group, analysts predict that EHang will post -0.83 EPS for the current year.

EHang announced that its Board of Directors has authorized a stock repurchase program on Monday, June 8th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On EHang

Several institutional investors have recently added to or reduced their stakes in the business. Leonteq Securities AG bought a new position in EHang in the 4th quarter valued at $26,000. Headlands Technologies LLC grew its holdings in shares of EHang by 26.7% during the second quarter. Headlands Technologies LLC now owns 19,964 shares of the company’s stock worth $131,000 after purchasing an additional 4,209 shares in the last quarter. Bessemer Group Inc. purchased a new stake in EHang in the first quarter valued at approximately $51,000. Hennion & Walsh Asset Management Inc. lifted its position in EHang by 24.4% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 55,305 shares of the company’s stock valued at $362,000 after purchasing an additional 10,860 shares during the last quarter. Finally, FourThought Financial Partners LLC purchased a new position in EHang in the 4th quarter worth approximately $190,000. 94.03% of the stock is owned by hedge funds and other institutional investors.

About EHang

EHang Holdings Limited is a China-based technology company focused on autonomous aerial vehicles (AAVs) and urban air mobility. The company develops aircraft, autonomous flight systems, and supporting infrastructure intended to enable pilotless passenger transportation and other low-altitude aerial services.

Its product portfolio includes the EH216 series of electric vertical takeoff and landing (eVTOL) aircraft, including the EH216-S passenger-carrying model. EHang also develops AAV applications for logistics, medical and emergency response, firefighting, aerial media, and other specialized uses, along with command-and-control systems and related operational services.

Founded in 2014 and headquartered in Guangzhou, China, EHang has conducted demonstration flights, commercial-operation trials, and partnerships in China and selected international markets.