Nikola Corporation (NKLA:NSD) has attracted unusual options trading attention grabbing the attention of investors. On a recent Friday, stock traders engaged in acquiring a staggering 225,139 put options on the company’s stock. This represents a remarkable increase of around 30% compared to the typical volume of 173,442 put options. This article will look into the details of the surge in unusual Nikola options trading and NKLA stock forecast.
A Glimpse into Nikola’s Operations:
Nikola Corporation operates as an innovative technology integrator focused on developing energy and transportation solutions. Its business units are divided into Truck and Energy. The Truck business unit is actively engaged in the development and commercialization of battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) tailored for the trucking sector.
NKLA Stock Forecast: Notable Price Movement
During this eventful trading period, shares of (NKLA:NSD) recorded an uptick of $0.08, reaching $1.31. The trading volume during this period stood at 66,826,531 shares, compared to the average volume of 45,587,707 shares. The firm’s 50-day simple moving average stands at $1.86 while its 200-day simple moving average rests at $1.53.
Furthermore, the current price of Nikola stock is USD 1.27. The average analyst target as per NKLA stock forecast is USD 2.75 with an upside potential of 116.54%. Moreover, the company boasts a high market capitalization of USD 1.12 Billion, with a PE ratio of -0.81 and a beta of 1.92. Nikola’s financial health is shown by its current ratio of 1.75, quick ratio of 1.37, and debt-to-equity ratio of 0.67.
NKLA Stock Forecast: Earnings Report and Future Predictions
Nikola (NKLA:NSD) recently announced its quarterly earnings on August 4th, revealing earnings per share of $0.24 for the quarter. This figure surpassed the consensus estimate of $0.27 by $0.03. The quarter’s performance showcased a negative return on equity of 146.64% and a negative net margin of 1,475.52% for Nikola.
Despite these challenges, the company reported revenue of $15.36 Million for the quarter. Hence, surpassing the consensus estimate of $14.68 Million. Analysts’ consensus expects Nikola to post an earnings per share of -0.87 for the current fiscal year.
Nikola Stock Insider Transactions and Market Response:
Nikola’s recent activities include notable insider transactions. CFO Anastasiya Pasterick was involved in selling 15,726 shares of the company’s stock in a transaction on August 10th. The shares were sold at an average price of $1.96, amounting to a total transaction value of $30,822.96. Following this transaction, the chief financial officer’s holdings amount to 174,486 shares in the company, with a value of approximately $341,992.56.
Additionally, Director Michael Lohscheller sold 68,985 shares of Nikola stock on August 10th at an average price of $1.96, translating to a total value of $135,210.60. Following this sale, the director’s stake now consists of 780,199 shares which were valued at $1,529,190.04. Insiders collectively sold 88,428 shares of company stock during the last quarter. The corporate insiders owed 10.00% of the stock.
Institutional Involvement and Market Impact on NKLA Stock Forecast:
Institutional investors have shown varying degrees of involvement with NKLA stock forecast. Swiss National Bank notably increased its stake in Nikola by 18.6% during the fourth quarter. It now owns 769,900 shares worth $1,663,000. Seaview Investment Managers LLC also increased its stake by 35.2% during the same period. Hence, this resulted in ownership of 46,634 shares valued at $101,000.
Similarly, Itau Unibanco Holding S.A. amplified its stake by 144.2%, now holding 38,927 shares valued at $84,000. Van ECK Associates Corp increased its stake by 39.5% during the first quarter, now possessing 2,995,523 shares worth $3,625,000. Finally, Mirae Asset Global Investments Co. Ltd. experienced a 102.4% lift in its stake during the same period. This resulted in 3,728,973 shares valued at $4,512,000. Notably, hedge funds and institutional investors own 23.80% of the company’s stock.
NKLA Stock Forecast: Should You Buy it?
NKLA stock forecast has experienced fluctuations, hitting the lowest point of $0.52 in the past year and reaching its highest point at $6.29. The stock is overpriced compared to its peers and had a negative cash flow in the past 4 quarters. However, the joint consensus of the analysts views the Nikola stock as bearish and rates it as “Buy”.
The Takeaway:
In the ever-changing market of stock trading, Nikola (NKLA:NSD) has drawn attention to unusual options trading and a surge in put options acquisition. Amidst varied analyst opinions, the company’s recent financial performance, including positive earnings surprises and stock value growth, has maintained market interest. Despite stock volatility, Nikola’s journey highlights the dynamic nature of the market and the need to stay vigilant to market shifts.
