Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)
EKSO stock rocketed in Friday’s trading session after an announcement that The Ford Motor Company (NYSE:F) is testing exoskeletons developed by Richmond, CA-based Ekso Bionics Holdings, Inc. (NASDAQ:EKSO).
The four EksoVests were paid for by the United Auto Workers union, which represents hourly workers at Ford, and the automaker plans tests for the exoskeleton in other regions including Europe and South America. The cost of the exoskeletons, which were developed as part of a partnership between Ford and Ekso, was undisclosed. Two workers at each of the company’s Wayne and Flat Rock factories have been testing the exoskeletons since May. The lightweight vest supports workers while they perform overhead tasks, providing lift assistance of up to 15 lbs. per arm through a mechanical actuator that uses torque to take the stress off a worker’s shoulders.
About Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) was founded in 2005 and began by developing exoskeletons for the military and medical fields. In 2013, the company branched out into the manufacturing and construction sectors in 2013. Ekso Bionics is the only exoskeleton company to offer technologies that range from helping those with paralysis to stand up and walk, to enhancing human capabilities on job sites across the globe, to providing research for the advancement of R&D projects intended to benefit U.S. defense abilities.
Last Wednesday Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) reported a Q3 2017 loss of (-$6.3) million, or (-$0.18) per share, on revenues of $1.6 million. According to Zack’s Investment Research, the consensus estimate for Q3 was a loss of (-$0.13). Despite missing the consensus estimate by over 35%, the market reacted with a shrug and EKSO stock was barely changed for the day.
However, the market reacted strongly to the press release announcing the relationship with the Ford Motor Company. EKSO shares closed on Thursday at $1.05, the gapped up to open at $1.30 before hitting their inter-day high of $1.58 and eventually settling at $1.53.
For the week, EKSO stock is up over 35%, but shares are down year-to-date by over 60%. Friday’s price action sent shares higher just one day after the stock threatened to make a new 52-week low below $0.99. While the consensus, one-year price target for Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is 43, that figure could change as news is absorbed about potential sales revenues through the global automobile manufacturer.
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: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.