AIRO Group Holdings, Inc. (NASDAQ: AIRO) will see its lock-up period come to an end 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, raising a total of $60 million at an initial price of $10 per share. With the expiration of the lock-up period, shares owned by company insiders and major shareholders will become available for trading.
Analysts have recently adjusted their price targets for AIRO Group, reflecting varied outlooks on the company’s performance. Mizuho has lowered its target from $31.00 to $25.00, maintaining an “outperform” rating. In contrast, Cantor Fitzgerald has decreased its target from $35.00 to $20.00 while also issuing an “overweight” rating. Weiss Ratings has reaffirmed a “sell (e-)” rating, and Wall Street Zen has downgraded AIRO Group from “hold” to “sell.” Meanwhile, BTIG Research has reduced its target price from $26.00 to $19.00, assigning a “buy” rating. Currently, three equities research analysts rate the stock as a Buy, while one has issued a Sell rating. According to MarketBeat, the stock holds an average rating of “Moderate Buy” with an average price target of $21.33.
In its latest quarterly earnings report released on November 14, 2023, AIRO Group reported an earnings per share (EPS) of ($0.28) and a revenue of $6.28 million for the quarter. These figures reflect the company’s ongoing challenges in achieving profitability.
Insider Activity and Shareholder Movements
Recent insider trading activity has also drawn attention. Major shareholder New Generation Aerospace, LLC sold 405,634 shares of AIRO Group stock on September 12, 2023, at an average price of $17.39 per share, totaling approximately $7,053,975. Following this transaction, the ownership stake of New Generation Aerospace decreased by 10%, leaving them with 3,650,710 shares valued at roughly $63.5 million. This sale was disclosed in a filing with the Securities and Exchange Commission (SEC).
Additionally, Chairman Chirinjeev Kathuria sold the same number of shares on the same day, resulting in a similar financial outcome. The transactions have raised questions about insider confidence in the company, as both sales represented a significant reduction in their stakes.
Over the past ninety days, insiders have sold a total of 1,097,026 shares valued at approximately $19 million, further indicating a trend of decreased holdings among key stakeholders.
Institutional Investors and Market Activity
Institutional trading activity surrounding AIRO Group has also been notable. Hedge funds and other institutional investors have recently bought and sold shares of the company. Woodline Partners LP increased its position by 41% during the third quarter, acquiring an additional 800,456 shares to reach a total of 2,753,067 shares worth about $52.9 million.
Alyeska Investment Group L.P. purchased a new stake valued at approximately $15 million, while Ilex Capital Partners UK LLP also acquired a new stake worth around $18.75 million. Vanguard Group Inc. expanded its holdings by 406%, owning 505,951 shares valued at approximately $9.7 million after purchasing an additional 405,951 shares in the last quarter. Invesco Ltd. made a new investment in AIRO Group, valued at approximately $3.8 million during the same period.
AIRO Group positions itself as a technologically advanced platform in the aerospace, autonomy, and air mobility sectors, targeting opportunities in the evolving aerospace and defense markets. With the end of the lock-up period approaching, analysts and investors will be closely watching market reactions and trading volume as insiders become eligible to sell their shares.
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