Joby Aviation (NYSE:JOBY) shares continued their downward trajectory on Thursday, falling 4.6% to $8.86 in early afternoon trading. The stock has now declined significantly from recent financing benchmarks, with trading volume surging to 34.81 million shares, or 116% above its 65-day average. The session saw a low of $8.79 and a high of $9.40.
The two-session turnover has been particularly notable, with approximately 85 million shares changing hands by Thursday afternoon. This represents about 13.6% of the company's 629.73 million-share public float, according to MarketWatch data. Wednesday's volume alone reached 50.6 million shares, with the stock closing at $9.28, down from $9.55 on Tuesday.
The current price level is well below the $11.35 per share at which Joby raised $576.3 million net in February through an equity sale of 52.9 million shares. At $8.86, shares are trading nearly 22% below that offering price. Additionally, the stock remains under the $10 first-tranche warrant exercise price tied to Delta Air Lines (NYSE:DAL). In a filing, Joby confirmed that Delta exercised that tranche for 7 million shares in January upon reaching a milestone.
Joby's capped-call arrangements linked to its 2032 notes have a strike price of $14.19, capped at $22.70. The stock closed Thursday about 38% below that strike, suggesting limited near-term financing risk from that instrument.
Despite the selloff, Joby's balance sheet remains robust. As of March 31, the company reported $875.4 million in cash, cash equivalents, and restricted cash, plus $1.59 billion in short-term marketable securities, totaling $2.47 billion. This cushion is expected to cover at least the next 12 months of working capital and capital expenditures. After accounting for the $690 million in 2032 notes from February, Joby's net cash and investments stand at approximately $1.78 billion before second-quarter spending.
However, losses remain a concern. Joby reported first-quarter revenue of $24.25 million, primarily from Blade's passenger services, but its net loss widened to $109.95 million from $82.41 million in the year-ago period.
On the operational front, Joby achieved a key milestone in May with the first flight of its FAA-conforming aircraft under Type Inspection Authorization and completion of the SR3 audit with the FAA. CEO JoeBen Bevirt described this as "the clearest path we've ever had to beginning passenger operations."
Analyst sentiment on JOBY remains mixed but leans positive relative to the current price. Google Finance lists six ratings: two Buy, three Hold, and one Sell. The average 12-month price target is $13.90, with a low of $9.00, which is still slightly above Thursday's close.
