Why Is Sintx Technologies (SINT) Stock Up 70% Today?

  • Sintx Technologies (SINT) more than doubled at one point on Tuesday, as SINT stock is now trending on the day.
  • The company just signed a new contract with a section of the U.S. Department of Defense for $150,000.
  • The news comes shortly after the stock underwent a 100-for-1 reverse stock split.
SINT stock - Why Is Sintx Technologies (SINT) Stock Up 70% Today?

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For the first time in a week, it’s finally a good day for the stock market. However, it’s a great day for Sintx Technologies (NASDAQ:SINT). Shares of SINT stock are up 72% as of this writing. At one point in the day, shares were up more than 102%.

If you haven’t heard of Sintx Technologies, don’t feel bad. The company sports a market capitalization of just $6.5 million. It’s a small micro-cap stock, but that doesn’t mean it’s not trending today.

Shares of SINT stock are on the move following a new contract associated with the U.S. Department of Defense. Indeed, the company announced “it has received a $150,000 contract from a section of the U.S. Department of Defense.”

A $150,000 contract may seem like a rounding error for most companies, but it’s noteworthy for an entity this small. The new deal calls on Sintx Technologies to “develop corrosion-resistant, dielectric, insulating multilayer coatings that will enable ‘unprecedented tool life’ and exceptional performance.”

The Phase 1 contract is definitely a positive for Sintx Technologies, but is there more at play?

Is That the Only Catalyst for SINT Stock?

On Dec. 19, SINT stock underwent a 1-for-100 reverse stock split. That became effective on Dec. 20. Shares initially rallied about 14% yesterday on the stock split, but finished lower by 4% (after falling 17% at one point).

Of course, reverse stock splits rarely come at a promising time for a company. If the business is booming and the stock is in demand, then the share price tends to do pretty well. If not, then companies often have to resort to reverse stock splits so they can continue to meet exchange requirements.

In the case of SINT stock, maintaining exchange requirements was the catalyst for the reverse stock split.

Given that Sintx Technologies is not profitable or free cash flow positive, the underperformance of the stock price is not surprising. As such, shares are down more than 80% on the year, even with today’s rally.

However, the hope is that this contract is the start of a more promising trend for its business.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/why-is-sintx-technologies-sint-stock-up-70-today/.

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