AIRO Group Holdings, Inc. (NASDAQ:AIRO) is set to see significant trading activity as its lock-up period expires on December 10, 2023. This follows the company’s initial public offering (IPO) on June 13, 2023, during which it issued 6,000,000 shares at an initial price of $10.00, raising a total of $60 million. With the end of the lock-up, shares held by insiders and major shareholders will become eligible for trading, potentially impacting stock volatility.
Analyst Ratings and Price Targets Shift
Recent analyst reports have provided updates on AIRO Group’s stock performance. On November 17, Mizuho revised its price target from $31.00 to $25.00 while maintaining an “outperform” rating. Cantor Fitzgerald followed suit on November 21, decreasing its target from $35.00 to $20.00, with an “overweight” rating.
In a contrasting view, Weiss Ratings reaffirmed a “sell (e-)” rating on October 8, indicating a lack of confidence in the stock’s potential. On November 22, Wall Street Zen downgraded AIRO Group from a “hold” to a “sell” rating. BTIG Research also adjusted its target, lowering it from $26.00 to $19.00, while maintaining a “buy” rating. Currently, three analysts have rated the stock as a Buy, while one has issued a Sell rating. According to MarketBeat, the average rating stands at “Moderate Buy” with a price target of $21.33.
Recent Earnings and Insider Transactions
AIRO Group reported its quarterly earnings on November 14, posting a loss of ($0.28) earnings per share (EPS) alongside revenues of $6.28 million for the quarter. These results may further influence investor sentiment as the lock-up expiration approaches.
Insider activity has also been notable. On September 12, major shareholder New Generation Aerospace, LLC sold 405,634 shares at an average price of $17.39, totaling approximately $7,053,975. Following this transaction, the firm retained 3,650,710 shares, valued at around $63.5 million. Furthermore, Chairman Chirinjeev Kathuria executed the same share sale, resulting in a 10% decrease in his ownership.
In the past ninety days, insiders have sold a total of 1,097,026 shares worth $19,077,282, which may signal various internal assessments of the company’s stock performance.
Institutional Investment Trends
AIRO Group has attracted interest from institutional investors. Woodline Partners LP increased its stake by 41% in the third quarter, owning 2,753,067 shares valued at approximately $52.9 million. Other significant transactions include Alyeska Investment Group L.P. purchasing a stake worth around $15 million, and Vanguard Group Inc. enhancing its shareholdings by 406% during the same period.
As the expiration of the lock-up period approaches, the potential for increased trading volume could lead to notable price fluctuations. Investors and analysts will be closely monitoring AIRO Group’s stock performance and the broader market reaction in the coming weeks.
