COMSovereign Holding Corp. (COMS) Stock Constantly Declining, Here’s Why

 COMSovereign Holding Corp. (COMS), a company providing telecommunication solutions to network operators, mobile device carriers, governmental units, and other enterprises worldwide, has declined 6.47% in aftermarket trading session and is trading at $1.30 at the time of the writing. On Friday, COMS stock closed the day at $1.39 after declining 4.79% during regular trading hours. The constant decline could be attributable to the upcoming announcement of quarterly results by the company. For the moment, let’s discuss some recent developments related to COMS stock.

Presentation at the conference

On 28th October, COMS announced that it will present at the Rocky Mountain Microcap Conference VIII which was scheduled to be held in person on November 3rd, 2021. The company’s chairman and Chief Executive Officer Dan Hodges was to host an in-person presentation during the conference.

COMS placed pricing of the public offering

On 27th October, COMS announced the pricing of its public offering of 20,000 shares of its 9.25% Series A Cumulative Redeemable Perpetual Preferred Stock. The public share price for the stock was set as $25.00 per share. The gross proceeds from the offering were expected to $8 million approximately. The shares were expected to start trading on 1st November 2021 on NASDAQ. The offering was expected to close on October 29th 2021 subject to satisfaction of customary closing conditions.

Q2 2021 financial highlights

On 16th August, COMS reported the financial results for the second quarter of the fiscal year 2021. The quarter ended on 30th June 2021. The company generated total revenue of $3.61 million during the period against $3.01 million for the same period of 2020. The gross profit for the period was $1.79 million against $1.45 million for the same period of 2020. The total operating expenses for the period were $12.18 million against $7.58 million for the same period of 2020. The company had cash and cash equivalents of $4.9 million on 30th June.

Executive commentary

While commenting on the results, Dan Hodges said that during the quarter, the company has made steady progress toward implementing its strategic plans which are highlighted by the significant investments made by the company during the period. He further said that the company expects to further bring improvements in its performance.

What lies ahead for COMS?

COMS has declined more than 35% during the last three months, primarily due to factors like abstemious performance during the quarter etc. However, analysts believe that the company is still a favourite among investors, as evidenced by its 52-weeks high and low. So, potential investors should keep a close eye on COMS stock in future.