Inseego Corp (NASDAQ:INSG) is a low-priced trading equity that has started to engage some focus among traders and investors as prices get a little traction in bounce mode. The big catalyst here of late appears to still be the company’s announcement of the release of its Skyus DS2, a USB modem with LTE Advanced/Category 6 capability. According to the release, “this high-throughput capacity supports download speeds of 300 Mbps, making it the first of its class to deliver high-speed connectivity to provide seamless, uninterrupted coverage.”
In all, the chart shows 25% during the past month in terms of shareholder gains in the listing, a bounce that has taken root amid largely bearish action over the larger time frame. That said, INSG has a history of dramatic rallies. Furthermore, the listing has seen an influx in interest of late, with the stock’s recent average trading volume running 43% above the average volume levels in play in this stock over the longer term.
Inseego Corp (NASDAQ:INSG) bills itself as a leading global provider of MiFi-branded intelligent wireless solutions for the worldwide mobile communications market and software-as-a-service (SaaS) and solutions for the Internet of Things (IoT). The Company sells its telematics solutions under the Ctrack brand, including its fleet management, asset tracking and monitoring, stolen vehicle recovery, and usage-based insurance platforms.
Inseego Corp. also sells business connectivity solutions and device management services through Inseego North America (formerly Feeney Wireless). With over 30 years of experience, Inseego provides customers with secure and innovative solutions and analytics for approximately 633,000 global subscribers, including 189,000 fleet management subscribers.
The Company is headquartered in San Diego, California.
According to company materials, “Inseego Corp., together with its subsidiaries, provides software-as-a-service (SaaS) and solutions for Internet of Things (IoT) worldwide. It sells telematics solutions, including fleet management, asset tracking and monitoring, stolen vehicle recovery, and usage-based insurance platforms under the Ctrack brand; and connectivity solutions and device management services. The company sells SaaS, software, and service solutions across multiple IoT vertical markets, including fleet management and vehicle telematics, usage-based insurance, stolen vehicle recovery, asset tracking and monitoring, business connectivity, and device management. Its platforms provide a way to order, connect, and manage remote assets; and improve business operations.”
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As noted above, the stock has been marching up the chart in recent action ever since the company announced the release of its Skyus DS2, which is a USB modem with LTE Advanced/Category 6 capability. As the company discussed in its latest release, “unlike many modems currently on the market, the Skyus DS2 employs Category 6 (Cat6) technology, which uses carrier aggregation to combine the power of multiple LTE bands for throughput of nearly three times the previous generation of modems.”
Hence, this is an evolutionary advance, rather than a revolutionary advance. But the market clearly sees something it likes. The action has taken the stock above recent range highs for a near test of the $1.50 level. That’s significant. Before this recent catalyst, shares were battling to hold onto support around the $0.95 area. While this is still a heavily beaten down name, the action around these key levels is potentially telling.
“Inseego remains committed to providing Industrial IoT solutions,” noted Inseego acting General Manager, Mary Cozza. “The release of the DS2 keeps pace with the growth in carrier capacity while remaining true to the power and simplicity of our original modem suite. The DS2 makes it easy for our customers to order one SKU and use it with their preferred carrier. By fully supporting the deployed LTE frequencies of the major carriers, the DS2 opens new opportunities for both carriers and customers.”
At this time, carrying a capital value in the market of $82.9M, INSG has a significant war chest ($18.5M) of cash on the books, which compares with about $3.5M in total current liabilities. One should also note that debt has been growing over recent quarters. INSG is pulling in trailing 12-month revenues of $242.4M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 14.6%. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $INSG stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!