Robotics Sale Pushes MAXR Stock to Fresh Highs

Plenty of short interest has built up around the satellite concern

Deputy Editor
Dec 30, 2019 at 10:02 AM
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The shares of satellite concern Maxar Technologies Inc (NYSE:MAXR) are soaring today, after the company announced it would be selling its Canadian space robotics business called MacDonald, Dettwiler and Associates (MDA) for C$1 billion, or roughly $765 million, to a consortium of financial sponsors led by Northern Private Capital (NPC). MAXR tagged an annual high of $17.34 out of the gate, last seen up 18.4% at $16.92.

This past year, Maxar stock has chopped higher, with pullbacks captured by the 120-day moving average, and, more recently, the 30-day trendline. Plus, just this month, MAXR sliced through former resistance at its 320-day moving average. With less than two sessions remaining before 2020, the security is pacing toward a 2019 gain of 38%. 

A round of upgrades and/or price-target hikes could sent MAXR higher, too. Currently, the majority of the seven analysts covering the stock consider it a tepid "hold." And what's more, the stock's 12-month consensus target price of $10.51 is a nearly 38% discount to last Friday's close.

Echoing this, shorts have taken a shine to MAXR recently. Short interest is up 5.3% in the last reporting period, with the 8.18 million shares sold short making up almost 14% of the stock's available float. At the equity's average pace of trading, it would take almost a week to cover these pessimistic positions, which could propel Maxar higher, should some of these bearish bets begin to unwind. 

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