xG Technology Inc (NASDAQ:XGTI)
xG Technology Inc (NASDAQ:XGTI) shares are up 5%, to $1.73, on heavy volume, after the wireless video technology company was awarded a $12.5 million contract by the U.S. Army. The contract includes hand-held equipment that displays real-time video imagery. The estimated completion date of for the supply of hand-held intelligence, surveillance, and reconnaissance receiver devices is September 24, 2020. This is the third similar contract awarded to the company by the U.S. Army in the last four years.
xG Technology’s brands provide wireless video solutions to broadcast, law enforcement, and defense markets, and private mobile broadband networks for use in difficult environments. xG’s stable of brands includes Integrated Microwave Technologies (IMT), Vislink, and xMax. IMT has pioneered advanced digital microwave systems and supplies its technology to the sports and entertainment broadcast industry and MAG (Military, Aerospace & Government) markets.
George Schmitt, Executive Chairman and CEO of xG Technology Inc (NASDAQ:XGTI), said, “We are honored to have been chosen by the U.S. Army to fulfill this important contract. It is a huge game changer that underscores our proven expertise in designing and delivering best-in-class wireless video communications solutions that enhance tactical insights. We will work closely with the Army to ensure they gain maximum effectiveness of our equipment in conducting their operations. We look forward to commencing product deliveries, and have already manufactured 50 units that are ready to ship as needed to our forces overseas.”
XGTI Stock Performance
xG Technology Inc (NASDAQ:XGTI) has a market capitalization of over 22.5 million and a stock float of just 12.8 million shares. There is a moderate short position held by traders that amounts to almost 12% of the total float. It has a book value per share of $2.46, so at current levels, XGTI is trading at a discount to that metric.
For the past year, XGTI stock has lost over 51%, however the shares are up 22% year-to-date, and up 7.8% for the past week. This past July, Maxim Group initiated coverage of the company and rated XGTI shares as a “Buy”. Prior to that rating, Roth Capital has, in January, raised the rating on XGTI shares from a “Neutral” to a “Buy”. Their consensus, one-year price target is $4.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.