Sidus Space Stock Is Tumbling Tuesday: What's Going On?

Sidus Space Inc SIDU shares are trading lower Tuesday after the company announced a proposed public offering.

What Happened: After the market close on Monday, Sidus Space announced that it intends to offer and sell 1,251,700 shares of its Class A common stock in an underwritten public offering.

Each share will be sold at a public offering price of $4.50 per share. The offering is expected to close on Feb. 1.

Sidus Space anticipates gross proceeds of $5.63 million. The company said it expects to use any net proceeds for working capital and general corporate purposes.

Sidus Space is a space and data-as-a-service satellite company focused on mission-critical hardware manufacturing, multi-disciplinary engineering services, satellite design, production, launch planning, mission operations and in-orbit support.

What’s Ahead For SIDU? Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Sidus Space, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Sidus Space, the 200-day moving average sits at $15.16, according to Benzinga Pro, which is above the current price of $4.77. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

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SIDU Price Action: Sidu Space shares were down 45.2% at $4.77 at the time of publication, according to Benzinga Pro.

Photo: Arek Socha from Pixabay.