Traders Purchase High Volume of Put Options on Nikola (NASDAQ:NKLA)

Nikola Co. (NASDAQ:NKLA) was the target of unusually large options trading activity on Tuesday. Traders bought 42,121 put options on the stock. This represents an increase of 65% compared to the typical volume of 25,517 put options.

Hedge Funds Weigh In On Nikola

Several large investors have recently bought and sold shares of the business. SG Americas Securities LLC increased its stake in Nikola by 137.9% in the third quarter. SG Americas Securities LLC now owns 264,773 shares of the company’s stock valued at $1,213,000 after purchasing an additional 153,494 shares during the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of Nikola in the 2nd quarter valued at $2,214,000. Nantahala Capital Management LLC purchased a new position in shares of Nikola in the 2nd quarter valued at $819,000. Sanctuary Advisors LLC purchased a new stake in Nikola in the second quarter valued at $138,000. Finally, Susquehanna Fundamental Investments LLC acquired a new position in Nikola in the second quarter valued at $368,000. Hedge funds and other institutional investors own 37.38% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Bryan, Garnier & Co downgraded Nikola from a “buy” rating to a “neutral” rating in a research report on Thursday, November 7th. DA Davidson cut their price objective on Nikola from $12.00 to $4.00 and set a “neutral” rating for the company in a research note on Monday, November 11th. Robert W. Baird reduced their target price on shares of Nikola from $14.00 to $10.00 and set an “outperform” rating for the company in a research report on Friday, November 1st. Finally, TD Cowen reduced their price objective on Nikola from $10.00 to $4.00 and set a “hold” rating on the stock in a research report on Friday, November 1st. Four equities research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, Nikola presently has a consensus rating of “Hold” and an average price target of $12.00.

Nikola Price Performance

Shares of NASDAQ:NKLA opened at $1.67 on Wednesday. The company has a current ratio of 1.17, a quick ratio of 0.94 and a debt-to-equity ratio of 0.71. The firm’s 50-day moving average is $3.59 and its two-hundred day moving average is $7.62. Nikola has a 1 year low of $1.64 and a 1 year high of $34.50.

Nikola (NASDAQ:NKLA) last issued its quarterly earnings results on Thursday, October 31st. The company reported ($2.75) EPS for the quarter, missing the consensus estimate of ($2.24) by ($0.51). The business had revenue of $25.20 million during the quarter, compared to analysts’ expectations of $37.23 million. Nikola had a negative net margin of 840.44% and a negative return on equity of 95.73%. Nikola’s revenue was up 1382.4% on a year-over-year basis.

Nikola Company Profile

Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector.