Sequans Communications S.A. [NYSE: SQNS] gained 10.63% or 0.59 points to close at $6.14 with a heavy trading volume of 1774182 shares. The company report on December 14, 2020 that Sequans Communications S.A. Announces Closing of Over-Allotment Option Related to Underwritten Public Secondary Offering of American Depositary Shares.
Sequans Communications S.A. (NYSE: SQNS), (“Sequans” or the “Company”), a leading developer and provider of 5G and 4G chips and modules for IoT devices, announced that the underwriter of the previously announced public secondary offering of American Depositary Shares (the “ADSs”) by Nokomis Capital Master Fund, L.P. (“Nokomis”) has exercised its over-allotment option (the “Option”) in full to purchase 379,494 additional ADSs for gross proceeds to Sequans of $2.09 million. Each ADS represents four ordinary shares of the Company, nominal value €0.02 per share The Option exercise closed on December 14, 2020. After the completion of the underwritten public secondary offering, including the over-allotment option, Sequans’ current total ADSs outstanding are 33,239,788.
The 2,529,961 ADSs offered by Nokomis in the secondary offering, which closed on December 10, 2020, were issued pursuant the conversion of $12.4 million in principal and accrued paid-in-kind interest of Sequans’ convertible notes, including one extra year of paid-in-kind interest, an incentive for converting prior to April 2022, as provided in the March 2020 amendments to the note agreements. After the closing of this secondary offering, Nokomis beneficially owns 9.9% of Sequans outstanding ADSs as a result of outstanding shares that it currently owns and convertible notes it continues to hold with conversion prices ranging from $4.12 to $6.80, which takes into account that the notes contain a blocker provision prohibiting ownership above 9.9%.
It opened the trading session at $5.55, the shares rose to $6.19 and dropped to $5.55, the range by which the price of stock traded the whole day. The daily chart for SQNS points out that the company has recorded -2.38% loss over the past six months. However, it is still -129.96% lower than its most recent low trading price.
If we look at the average trading volume of 358.61K shares, SQNS reached to a volume of 1774182 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Sequans Communications S.A. [SQNS]:
B. Riley FBR have made an estimate for Sequans Communications S.A. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 18, 2020. While these analysts kept the previous recommendation, Needham dropped their target price from $3 to $2.50. The new note on the price target was released on August 01, 2018, representing the official price target for Sequans Communications S.A. stock. Previously, the target price had yet another drop from $2.75 to $2.50, while B. Riley FBR Inc. kept a Buy rating on SQNS stock. On October 05, 2017, analysts decreased their price target for SQNS shares from 5.50 to 4.
The Average True Range (ATR) for Sequans Communications S.A. is set at 0.41, with the Price to Sales ratio for SQNS stock in the period of the last 12 months amounting to 4.24.
Trading performance analysis for SQNS stock
Sequans Communications S.A. [SQNS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 13.49. With this latest performance, SQNS shares gained by 34.95% in over the last four-week period, additionally sinking by -2.38% over the last 6 months – not to mention a rise of 106.73% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SQNS stock in for the last two-week period is set at 65.80, with the RSI for the last a single of trading hit 70.58, and the three-weeks RSI is set at 61.98 for Sequans Communications S.A. [SQNS]. The present Moving Average for the last 50 days of trading for this stock 4.86, while it was recorded at 5.64 for the last single week of trading, and 5.66 for the last 200 days.
Sequans Communications S.A. [SQNS]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Sequans Communications S.A. [SQNS] shares currently have an operating margin of -101.32 and a Gross Margin at +16.50. Sequans Communications S.A.’s Net Margin is presently recorded at -118.90.
Return on Total Capital for SQNS is now -105.82, given the latest momentum, and Return on Invested Capital for the company is -240.03. Additionally, SQNS Total Debt to Total Capital is recorded at 237.74, with Total Debt to Total Assets ending up at 80.59.
Reflecting on the efficiency of the workforce at the company, Sequans Communications S.A. [SQNS] managed to generate an average of -$965,531 per employee. Receivables Turnover for the company is 1.85 with a Total Asset Turnover recorded at a value of 0.49.Sequans Communications S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.00.
Sequans Communications S.A. [SQNS]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Sequans Communications S.A. posted -0.3/share EPS, while the average EPS was predicted by analysts to be reported at -0.29/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -3.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SQNS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Sequans Communications S.A. go to 0.35%.
An analysis of insider ownership at Sequans Communications S.A. [SQNS]
There are presently around $76 million, or 47.70% of SQNS stock, in the hands of institutional investors. The top three institutional holders of SQNS stocks are: BPIFRANCE SA with ownership of 3,378,963, which is approximately -2.066% of the company’s market cap and around 4.60% of the total institutional ownership; AWM INVESTMENT COMPANY, INC., holding 2,808,816 shares of the stock with an approximate value of $17.25 million in SQNS stocks shares; and DIVISAR CAPITAL MANAGEMENT LLC, currently with $12.78 million in SQNS stock with ownership of nearly 0.31% of the company’s market capitalization.
Positions in Sequans Communications S.A. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 22 institutional holders increased their position in Sequans Communications S.A. [NYSE:SQNS] by around 1,100,157 shares. Additionally, 17 investors decreased positions by around 966,552 shares, while 6 investors held positions by with 10,281,347 shares. The mentioned changes placed institutional holdings at 12,348,056 shares, according to the latest SEC report filing. SQNS stock had 15 new institutional investments in for a total of 523,631 shares, while 5 institutional investors sold positions of 129,678 shares during the same period.