Shares of Sypris Solutions, Inc. (SYPR) were soaring in Tuesday’s pre-market trading. SYPR stock price saw a jump of 70.67% to reach $6.40 a share at the time of this writing.SYPR was up by 6.23% at the previous closing.It seems that climbing stock price has nothing to do with any news.
What’s happening?
There is no news, no press release by Sypris Solutions, no analysts upgrades or upswing targeted per share price that would explain the rally. However, SYPR announced in the last week that it will report its fourth-quarter financial results of 2020 on March 18, 2021, via real-time webcast and rebroadcast of its conference call.
SYPR announced on February 24, 2021, that it has won a defense contract award from the U.S DoD contractor. Sypris Electronics, LLC, a subsidiary of Sypris Solutions, will now work on the manufacturing and testing of electric supply modules for the anti-ship missile system. The contract is mainly intended to meet the needs of U.S Navy and Air Force warfighters. The missile system is equipped with advanced technologies and functional in both day and night, all weather conditions, and can destroy specific targets with less dependency on intelligence, surveillance, and GPS navigation.
At the beginning of the second week of February 2021, SYPR received orders for its Tube Turns® D-bolt, and Tool-less® specialty closures from two high-pressure energy projects. One project is anchor Field development in the Gulf of Mexico and the other is the gas pipeline upgradation in North America.
In the third quarter of 2020, SYPR’s gross profit increased by 47.1% quarter over quarter and the gross margin was 490 points higher than the previous year. Earning per share was $0.17 in the third quarter of 2020 as compared to a loss of $0.07 per share of the previous year. Sypris Electronics revenue for the third quarter increased by 52.6% as compared to the same period of the prior year.
Conclusion
SYPR stock has captivated the investors despite the absence of any specific news today. Management of Sypris Solutions is well focused on the scaling of its products.SYPRhas won defense contract awards and high-pressure energy projects which shows the likely growth of SYPR stock in the future.
