NextNav (NASDAQ:NN) Shares Gap Up After Strong Earnings

Shares of NextNav Inc. (NASDAQ:NN) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.40, but opened at $9.15. NextNav shares last traded at $8.5750, with a volume of 341,550 shares changing hands.

The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.12) by $0.08. NextNav had a negative net margin of 3,232.19% and a negative return on equity of 211.25%. The company had revenue of $1.58 million for the quarter, compared to analysts’ expectations of $0.99 million.

NextNav News Summary

These are some of the NN news items that stood out recently:

• Positive Sentiment: NextNav reported a Q3 loss of $0.04 per share, narrower than the $0.12 loss analysts expected. Revenue was $1.58 million, above the $0.99 million consensus estimate. NextNav Q3 results and operational highlights
• Positive Sentiment: The company highlighted single-digit-meter positioning performance in Santa Clara, a technical milestone for its positioning technology. It ended Q3 with about $290 million in liquidity, providing resources to fund operations and development. NextNav positioning and liquidity update
• Negative Sentiment: Despite beating estimates, NextNav remains unprofitable and generated only $1.58 million in quarterly revenue. Its reported negative net margin underscores the risk that technical progress and available liquidity have yet to translate into sustainable commercial revenue. NextNav earnings results

Analyst Ratings Changes

Several research analysts have commented on the company. Odeon Capital Group started coverage on NextNav in a report on Monday, July 20th. They set a “buy” rating and a $22.00 target price on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of NextNav in a research note on Thursday, October 15th. Wall Street Zen cut NextNav from a “hold” rating to a “sell” rating in a research note on Sunday, September 27th. Clear Str upgraded NextNav to a “strong-buy” rating in a research report on Monday, September 21st. Finally, Wells Fargo & Company reaffirmed a “buy” rating on shares of NextNav in a research note on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $32.33.

Insider Activity at NextNav

In related news, CFO Timothy Gray sold 11,099 shares of the business’s stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $14.64, for a total value of $162,489.36. Following the transaction, the chief financial officer owned 120,687 shares in the company, valued at $1,766,857.68. The trade was a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mariam Sorond sold 69,853 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $15.30, for a total transaction of $1,068,750.90. Following the sale, the chief executive officer directly owned 1,171,792 shares in the company, valued at $17,928,417.60. This trade represents a 5.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 87,667 shares of company stock worth $1,331,153 over the last quarter. Company insiders own 7.80% of the company’s stock.

Institutional Investors Weigh In On NextNav

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp grew its stake in NextNav by 4.8% during the second quarter. State Street Corp now owns 2,343,255 shares of the company’s stock worth $41,780,000 after purchasing an additional 108,338 shares during the period. General American Investors Co. Inc. bought a new stake in NextNav in the third quarter worth approximately $10,063,000. Sona Asset Management US LLC increased its holdings in NextNav by 37.9% in the first quarter. Sona Asset Management US LLC now owns 521,477 shares of the company’s stock worth $8,354,000 after purchasing an additional 143,349 shares in the last quarter. Commonwealth Equity Services LLC acquired a new position in NextNav in the third quarter valued at approximately $5,319,000. Finally, First Trust Advisors LP lifted its stake in NextNav by 3.8% in the first quarter. First Trust Advisors LP now owns 296,391 shares of the company’s stock valued at $4,748,000 after buying an additional 10,761 shares during the period. Institutional investors own 79.16% of the company’s stock.

NextNav Stock Up 2.1%

The stock has a market capitalization of $1.45 billion, a price-to-earnings ratio of -8.80 and a beta of 1.20. The company has a 50 day simple moving average of $12.56 and a 200-day simple moving average of $16.18.

NextNav Company Profile

NextNav, Inc. develops positioning, navigation and timing technologies designed to complement and help provide alternatives to satellite-based GPS. Its services support location-aware applications in environments where GPS signals may be limited, including indoors and in urban areas. The company’s offerings include Pinnacle, a service that provides vertical location information, such as a device’s floor or height within a building, and TerraPoiNT, a terrestrial network designed to deliver positioning and timing signals.