When it comes to finding the best penny stocks to buy, traders have many things to choose from. Whether it’s the latest meme stock trend, industry breakout, or a new corporate development, catalysts are one way to discover trade ideas. In many cases, day traders will look for volume first. They’ll then research the company to understand the source of such momentum. Today, one of the top penny stocks of the morning session is Sidus Space (NASDAQ: SIDU). It turned heads thanks to an explosive premarket move.
Why SIDU Stock Is Moving Today
SIDU stock is moving today thanks to big, premarket news. Sidus signed a memorandum of understanding with Dhruva Space Private Limited. This MOU aims to further commercialization efforts for space technologies and services. The two will collaborate on support programs for space missions in India and the US.
“Our renewed and enhanced agreement with Dhruva Space is another significant step towards our collective plans to design, manufacture, deploy and support constellation-based solutions for global commercial and government customers. This agreement with Dhruva was just one of the many significant customer and partner opportunities that came out of the SATELLITE 2022 conference in March,” said Carol Craig, Sidus CEO/Founder.
Thanks to the growing interest in space travel from Virgin Galactic (NYSE: SPCE) and Amazon (NASDAQ: AMZN) CEO Jeff Bezos’ Blue Origin, space stocks are growing in popularity. Sidus has continued building its partnerships with companies within the space industry. These include arrangements with Aitech Systems, Red Canyon Software, and Kongsberg Satellite Services.
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What To Know About Sidus Space Inc. (NASDAQ: SIDU)
Late last year, Sidus Space made its public debut in a bullish fashion. The stock exploded to highs of $29.70, but like most recent IPOs, that move was fleeting, and SIDU stock has slipped lower since. With a lower public float below 20 million shares, stock market volatility has become a focal point for momentum traders.
The market has taken a liking to the news early on. But keeping the previous volatility in mind is essential. SIDU stock has shifted course at a moment’s notice at times. Since tech has become one of the laggards during the stock market sell-off, external factors might also have a role to play.
Sidus focuses on commercial satellite design in addition to manufacturing, launch operations, and data collection. Its Space-as-a-Service offerings include hardware manufacturing, satellite manufacturing, and support services for its clients.
Recent SIDU Stock Financial Results
Besides this latest news, Sidus reported its fourth-quarter and full-year earnings last month. Revenue growth for the quarter was a key highlight despite posting an overall decrease for the year. Q4 financial highlights included:
- Revenue increased to $523,419 for the three-month period ended December 31, 2021, from $268,507 during the same period in 2020, an increase of 95%
- Loss from operations increased to $1,620,017 for the three-month period ended December 31, 2021, versus $363,472 in the comparable period of 2020.
- Net loss was $2,426,490 for the three-month period ended December 31, 2021 compared to a net loss of $364,575 during the same period in 2020. The loss was primarily a result of expansion of staff and costs associated with the Company’s initial public offering in December of 2021.
“2021 was a groundbreaking year for Sidus Space. The company, built on more than a decade of experience manufacturing and assembly for commercial, military and government customers, has positioned itself to become one of the leading companies in the satellite industry. We hired key personnel, established strong partnerships, added customers, and began manufacturing our own satellites – readying for launch later this year.”
Carol Craig, Founder and CEO of Sidus Space
The company appears to expect that this latest quarter’s performance could become a launchpad for future growth in 2022.
Should You Buy SIDU Stock?
We’ve established SIDU stock as one with a tendency for increased volatility. Thanks to Friday’s news, shares have surged during premarket hours, taking SIDU to its highest levels in months. Trading volumes were also the highest since the company went public. Given the overall trend, a decision to buy or avoid SIDU stock is up to you. As of the timing of this article, shares have retreated from their early highs, so it will be interesting to see if SIDU stock can reverse course before the end of the week.
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