Meta Materials (NASDAQ:MMAT) stock is down by about 80% so far this year, driven by disappointing financial results, Wells Notices and shares being in noncompliance with Nasdaq’s minimum price requirement of $1.
Back in July, the U.S. Securities and Exchange Commission (SEC) announced that it had provided Meta, former CEO John Brda and CEO George Palikaras with Wells Notices. A Wells Notice is not an immediate charge or a conclusion of wrongdoing. Instead, it provides the recipients with the opportunity to address the issues before a final determination is made. One of the issues in question is Meta’s merger with Torchlight Energy Resources. The enforcement staff of the SEC has already made a preliminary determination to recommend the SEC to file civil enforcement actions against the recipients. Meta has since not submitted any SEC filings to address the Wells Notices.
Despite the Wells Notices, Palikaras recently initiated an insider buy. On Aug. 16, the CEO purchased 100,000 shares of MMAT stock at an average price of 22.66 cents per share. In total, the transaction was worth $22,660. This was also the first insider purchase since Aug. 11, 2022, when Palikaras acquired 42,000 shares at an average price of 96 cents per share. Palikaras last reported direct and indirect ownership of 1.39 million shares.
5 Investors Betting Big on MMAT Stock in Q2
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the second quarter, only 83 13F filers disclosed a stake in MMAT stock, a decline of 22 filers from the prior quarter. In total, these filers own 30.84 million shares, down by 11.17% compared to 34.72 million shares during Q1. None of the filers own MMAT in their top 10 positions.
Meanwhile, MMAT’s put/call ratio as of June 30 sits at a low 0.05, down from 0.17. That’s equivalent to 458,800 puts and 9.21 million calls, implying a bullish options stance. Alyeska Investment Group — Meta Materials’ largest shareholder as of Q2 — owns calls against 6 million shares and is the largest call holder.
With that in mind, let’s take a look at Meta’s largest shareholders as of Q2:
- Alyeska Investment Group: 6 million shares. Alyeska acquired its entire stake during Q2.
- BlackRock (NYSE:BLK): 5.44 million shares. BlackRock sold off 1 million shares during Q2.
- Vanguard: 4.55 million shares. Vanguard sold off 309,967 shares during Q2.
- Geode Capital Management: 4.54 million shares. Geode acquired 1.07 million shares during Q2.
- Susquehanna International Group: 2.27 million shares. Susquehanna acquired 1.51 million shares during Q2.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
