Maxar Technologies (TSX:MAXR)(NYSE:MAXR) stock was down 4% in late afternoon trading on July 9. The space technology company has passed through the most tumultuous period in its existence over the last year. Shares are still down 80% from the same time in July 2018.
Maxar fell victim to several setbacks last year. The first was the vindication of a short seller who had called Maxar’s accounting into question. An earnings report that followed revealed that the warnings had merit, and Maxar was forced to absorb a $383.6-million non-cash charge to earnings for impairment and obsolescence.
The news was worse to open the year. Maxar announced that its WorldView-4 Imaging Satellite experienced a failure to open the year. The satellite generated approximately $85 million in annual revenue, while having a total net book value of $155 million. This was a heavy blow to start 2019, sent Maxar into the single-digit price range.
Maxar stock has climbed over 50% over the past month. What is behind the current runup? This time around, Maxar is getting a boost as speculation has risen over a potential buyout. Reuters reported that Leonardo SpA and Thales SA were considering a joint bid for the beleaguered Colorado-based space company.
Readers on the hunt for short-term gains may want to consider Maxar right now. The stock had an RSI of 64 at the time of this writing which has pushed shares out of technically overbought territory.
