If you have been watching the action in the penny stock space then you might have noticed that on Wednesday the BlackSky Technology (NYSE:BKSY) stock had emerged as a major gainer and clocked gains of as much as 98%.
Trading Data
On Wednesday, BKSY stock soared 98% to $2.33 with more than 148.18 million shares traded, compared to a volume of 3.35 million shares. The stock moved within a range of $1.1650 – 2.9700 after opening trading at $1.20.
BlackSky Awarded 10-Year Electro Optical Commercial Layer (EOCL) Contract with U.S. Government
More importantly, the rally came about after there was a specific announcement with regards to the satellite imagery company. It emerged that the government agency National Reconnaissance Office had awarded contracts to three companies and BlackSky was one of them. The announcement naturally came as a source of considerable optimism for investors and it led to the remarkable gains in the stock.
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The two other companies, Maxar Technologies, and Planet Labs, which were also awarded contracts by the same agency, did not experience similar rallies.
The rally in the BlackSky stock commenced right after the news emerged and it continued on its upward trajectory through the rest of the day. While it is true that such massive gains are not going to continue on a daily basis and the stock is expected to stabilize, it goes without saying that it may be a good idea for investors to consider taking a closer look into it.
Key Quote
“This contract is a pivotal moment in the expansion of the partnership between commercial space and the U.S. Government. We’re proud to be selected as a long-term trusted mission partner of the NRO,” said Brian O’Toole, BlackSky CEO. “We will continue to enhance our Spectra AI platform and advance our satellite constellation in support of the NRO and our growing customer base around the world.”
Technical Data
BKSY stock is trading above the 20-Day and 50-Day Moving averages of $1.47 and $1.65 respectively. However, the stock is trading below the 200-Day moving average of $5.73.
