Stock Traders Purchase High Volume of Call Options on Eargo (NASDAQ:EAR)

Eargo, Inc. (NASDAQ:EAR) saw unusually large options trading on Thursday. Traders purchased 18,474 call options on the stock. This represents an increase of 8,003% compared to the average volume of 228 call options.

Shares of Eargo stock opened at $7.04 on Friday. The stock’s fifty day moving average is $26.15 and its 200-day moving average is $37.07. The firm has a market capitalization of $275.69 million and a PE ratio of -5.63. The company has a quick ratio of 8.11, a current ratio of 8.24 and a debt-to-equity ratio of 0.09. Eargo has a 12-month low of $6.33 and a 12-month high of $76.75.

Eargo (NASDAQ:EAR) last announced its earnings results on Thursday, August 12th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.11). Eargo had a negative return on equity of 39.32% and a negative net margin of 52.33%. Analysts expect that Eargo will post -1.58 EPS for the current year.

A number of research analysts have issued reports on EAR shares. Wells Fargo & Company lowered Eargo from an “overweight” rating to an “equal weight” rating and set a $10.00 price target for the company. in a research report on Thursday. Zacks Investment Research lowered Eargo from a “hold” rating to a “sell” rating in a research report on Tuesday, August 17th. JPMorgan Chase & Co. lowered Eargo from an “overweight” rating to an “underweight” rating and reduced their price target for the stock from $44.00 to $11.00 in a research report on Thursday. Finally, William Blair downgraded Eargo from an “outperform” rating to a “market perform” rating in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $25.50.

In related news, CFO Adam Laponis sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 29th. The stock was sold at an average price of $38.43, for a total transaction of $384,300.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nina Richardson sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 14th. The shares were sold at an average price of $20.32, for a total value of $60,960.00. The disclosure for this sale can be found here.

A number of large investors have recently bought and sold shares of EAR. Envestnet Asset Management Inc. purchased a new position in Eargo in the first quarter valued at about $1,109,000. Alliancebernstein L.P. grew its stake in Eargo by 40.3% in the first quarter. Alliancebernstein L.P. now owns 1,308,815 shares of the company’s stock valued at $65,375,000 after purchasing an additional 376,021 shares in the last quarter. Rhumbline Advisers grew its stake in Eargo by 5.9% in the first quarter. Rhumbline Advisers now owns 7,494 shares of the company’s stock valued at $374,000 after purchasing an additional 416 shares in the last quarter. BlackRock Inc. grew its stake in Eargo by 26.9% in the first quarter. BlackRock Inc. now owns 966,455 shares of the company’s stock valued at $48,274,000 after purchasing an additional 205,046 shares in the last quarter. Finally, Russell Investments Group Ltd. purchased a new position in Eargo in the first quarter valued at about $1,300,000. 69.69% of the stock is currently owned by hedge funds and other institutional investors.

About Eargo

Eargo, Inc, a medical device company, develops and sells hearing aids to assist people with hearing loss in the United States. It sells its products through online stores. The company was formerly known as Aria Innovations, Inc and changed its name to Eargo, Inc in November 2014. Eargo, Inc was founded in 2010 and is headquartered in San Jose, California.

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