Investors Purchase High Volume of EHang Call Options (NASDAQ:EH)

EHang Holdings Limited Unsponsored ADR (NASDAQ:EH) was the recipient of some unusual options trading on Monday. Investors bought 23,229 call options on the company. This is an increase of 1,049% compared to the average volume of 2,022 call options.

EHang Trading Up 1.9%

Shares of EH stock opened at $5.32 on Wednesday. EHang has a 1-year low of $4.99 and a 1-year high of $20.45. The company has a current ratio of 1.87, a quick ratio of 1.70 and a debt-to-equity ratio of 0.10. The stock has a market cap of $399.64 million, a price-to-earnings ratio of -9.85 and a beta of 1.13. The stock has a 50-day moving average of $7.49 and a 200-day moving average of $10.28.

EHang announced that its board has authorized a share repurchase plan on Monday, June 8th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback plans are often a sign that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $4.40 price objective (down from $9.70) on shares of EHang in a research note on Monday, July 6th. Zacks Research downgraded shares of EHang from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th. Weiss Ratings lowered shares of EHang from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, July 14th. The Goldman Sachs Group cut shares of EHang from a “buy” rating to a “neutral” rating and set a $7.30 price target for the company. in a research report on Tuesday, July 14th. Finally, UBS Group downgraded shares of EHang from a “buy” rating to a “neutral” rating and set a $11.10 price target for the company. in a research note on Thursday, June 4th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $7.18.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Leonteq Securities AG bought a new stake in shares of EHang in the 4th quarter valued at $26,000. Bessemer Group Inc. bought a new position in EHang during the first quarter worth $51,000. Legal & General Group Plc lifted its holdings in EHang by 171.7% in the second quarter. Legal & General Group Plc now owns 3,380 shares of the company’s stock valued at $59,000 after buying an additional 2,136 shares during the period. Daiwa Securities Group Inc. lifted its holdings in EHang by 47.6% in the fourth quarter. Daiwa Securities Group Inc. now owns 4,816 shares of the company’s stock valued at $63,000 after buying an additional 1,553 shares during the period. Finally, Advisory Services Network LLC bought a new stake in EHang during the third quarter valued at $117,000. Institutional investors and hedge funds own 94.03% of the company’s stock.

EHang Company Profile

EHang Holdings Limited is a China-based technology company specializing in the development and manufacturing of autonomous aerial vehicles (AAVs) for passenger transportation, logistics, and other commercial applications. Established in 2014 and listed on NASDAQ under the ticker EH in 2019, EHang focuses on delivering turnkey solutions that integrate hardware, flight control systems and a cloud-based operating platform. Its flagship products include the EH216 series passenger AAV and the Falcon series unmanned aerial vehicles, designed to support urban air mobility, aerial filming, emergency response and short-range cargo delivery.

The company’s business model encompasses research and development, manufacturing, certification support, and operations services.