Sidus Space Inc

Sidus Space, Inc. (NASDAQ: SIDU) is a provider of space-as-a-service solutions including end-to-end satellite support. The Company is engaged in hardware manufacturing and multi-disciplinary engineering services such as satellite design, manufacture, launch planning, mission operations, in-orbit support, and space-based data collection. The Company provides data for insights on aviation, maritime, weather, space services, earth intelligence and observation, financial technology (Fintech) and the Internet of things (IoT).

Recent Financial and Business Updates:

• Revenue for the quarter ended March 31, 2023, rose to USD 2,263,627 compared to USD 1,799,335 for the same period in 2022, reflecting a 26% growth primarily driven by the significant increase in satellite revenue as that segment of the business matures.
• The gross profit for the quarter was USD 895,799, representing 40% of the revenue, influenced by the mix of contracts, higher material purchases, and ongoing supply chain challenges. Total operating expenses increased to USD 3,542,169 for the quarter, compared to USD 3,242,783 in the previous year, mainly due to the expansion of the workforce to support business scaling efforts.
• As of March 31, 2023, SIDU had USD 2.8 million in cash.
• Following the quarter, the company conducted a common stock and warrant offering, resulting in the sale of approximately 8.6 million shares of Class A common stock, pre-funded warrants for approximately 21.7 million shares of Class A common stock, and warrants for approximately 30.3 million shares of Class A common stock. Additionally, the company partially exercised the underwriter's over-allotment option, selling around 3.8 million shares of Class A common stock and accompanying warrants. The offering generated gross proceeds of approximately USD 11.2 million.
• The net proceeds from the offering will be utilized to execute the company's strategic plan, including the accelerated production of satellites, and maintaining a consistent launch schedule. Furthermore, the company secured a follow-on contract for the next phase of NASA's Autonomous Satellite Technology for Resilient Applications (ASTRA) project.
• In a move to expand its international presence, Sidus Space was awarded a USD 2.5 million agreement with The Netherlands Organization for Applied Scientific Research (TNO) to deploy and test TNO's laser communications technology on a Sidus LizzieSat™ satellite. Additionally, the company announced its intention to establish a new office in the Netherlands to strengthen its foothold in Europe.

Technical Observation (on the daily chart)

The price of SIDU stock has shown a consistent downward trend since making its 52-week high on July 21, 2022, with a correction of approximately 96.25%. The RSI (14 period) momentum indicator is at a value of 38.31, taking support from 30 levels, with expectations of some consolidation or a short-term upward momentum. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is July 06, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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