AEVA

Aeva Technologies ($AEVA) Shares Double in Two Weeks Following Major Shareholder's $34.5 Million Buying Spree

04/01/2025 00:58

Shares of Aeva Technologies Inc ($AEVA), a U.S.-based LiDAR technology company, have experienced a dramatic surge recently. The stock, which was trading around $3 in mid-March, more than doubled in just two weeks, breaking through the $7 mark by the end of March. Behind this powerful upward momentum appears to be aggressive share purchases by a major shareholder. During the last two weeks of March, Aeva's major shareholder, SYLEBRA CAPITAL LLC, engaged in a series of substantial purchases. Between March 24 and March 31, in just six trading days, they acquired approximately 5.85 million shares, totaling about $34.5 million. Notably, both the volume of purchases and the average price paid per share increased over time, from $4.36 to $6.77, indicating strong conviction despite the rising share price. Interestingly, these major purchases coincided with some insider selling. On March 10, CTO Mina Rezk sold 70,000 shares (approximately $195,000) at $2.79, and on March 26, CEO Soroush Salehian Dardashti sold 200,000 shares (about $1.07 million) at $5.36. The CEO's sale was executed pursuant to a pre-planned Rule 10b5-1 trading plan, with shares sold at prices ranging from $5.105 to $5.80. Aeva Technologies is a small-cap company developing 4D LiDAR-on-chip technology for autonomous vehicles, consumer electronics, and industrial automation. With a market capitalization of approximately $367 million, it remains relatively small but has attracted attention for its technological potential. Looking at the company's recent financial performance, revenue for fiscal year 2024 reached $9.07 million, representing a 110.23% increase year-over-year. In its Q1 2025 results (quarter ended December 31, 2024), revenue grew to $2.70 million, up 67.3% from the same period last year and exceeding analyst expectations of $2.47 million. Net loss per share improved from 90 cents to 67 cents year-over-year. Despite this revenue growth, Aeva continues to record substantial losses. For fiscal year 2024, the company reported an operating loss of $146.87 million and a net loss of $152.26 million. These losses reflect ongoing investments in research and development to advance and commercialize its LiDAR technology. The company currently holds approximately $112.01 million in cash and short-term investments, but with an annual operating cash burn of about $106.91 million, additional funding may be necessary in the future. Broader trends in the LiDAR industry are also influencing Aeva's stock performance. In December, a Washington think tank report raised concerns that Chinese LiDAR sensors could pose hacking risks to U.S. defense equipment. The report recommended banning the procurement of Chinese LiDAR in defense gear and creating alternative supply chains with allied countries. This development could potentially benefit U.S.-based LiDAR companies like Aeva in the long term. Currently, analysts maintain an average "buy" rating on Aeva, with a 12-month price target of $5.50. However, the stock's rapid rise in late March has already significantly exceeded this target. While the major shareholder's substantial purchases and the sharp stock price increase demonstrate strong confidence in Aeva's technology and growth potential, challenges remain, including high operating losses and cash burn rates. The CEO's stock sale might cause some confusion among investors in the short term, but considering it was a pre-planned transaction and is dwarfed by the major shareholder's overwhelming purchases, it's difficult to interpret it as a negative signal about the company's outlook. Moving forward, how quickly Aeva can achieve technology commercialization and profitability improvement, and how it maintains its competitive edge in the LiDAR market, will be key factors for long-term investors to watch.

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