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NORTON, Mass. - CPS Technologies Corp. (NASDAQ:CPSH), a small-cap technology company with a market capitalization of $54.47 million and current stock price of $3.75, announced Monday plans to offer shares of its common stock in an underwritten public offering, according to a press release statement. According to InvestingPro analysis, the stock appears overvalued at current levels.
The company, which specializes in high-performance material solutions and has seen its stock surge 143.55% over the past year, intends to grant underwriters a 45-day option to purchase up to an additional 15% of the offered shares on the same terms and conditions.
Roth Capital Partners is serving as the sole book-running manager for the offering, which remains subject to market conditions. The company noted there is no assurance regarding the completion, timing, or final terms of the offering.
The offering will be made pursuant to a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on September 20, 2024, and declared effective on October 17, 2024.
CPS Technologies manufactures products for various applications including electric trains, wind turbines, electric vehicles, Navy ships, and 5G infrastructure. The company’s hermetic packages are used in aerospace and satellite applications, while its armor products provide ballistic protection. InvestingPro data shows the company maintains a strong balance sheet with more cash than debt, though it currently faces challenges with weak gross profit margins of 6.88%. Subscribers can access 8 additional key insights about CPSH on InvestingPro.
The announcement comes as part of the company’s ongoing business operations, though specific details about how proceeds might be used were not disclosed in the statement. The company’s next earnings report is scheduled for October 31, 2025.
In other recent news, CPS Technologies reported record revenue of $8.1 million for the second quarter of 2025, marking a 61% increase compared to the previous year. The company also achieved a net income of $100,000, a notable improvement from a net loss of $900,000 in the same period last year. Additionally, CPS Technologies announced a Phase II Small Business Technology Transfer contract worth $1.15 million from the U.S. Army to develop a controlled fragmentation tungsten warhead. This project is a continuation of a previously successful Phase I program. Furthermore, CPS Technologies secured a $125,000 contract from the U.S. Department of Energy for research on high-performance impact limiters for nuclear safety. In terms of corporate actions, the company revealed plans for an underwritten public offering of common stock, with Roth Capital Partners as the sole book-running manager. These developments highlight CPS Technologies’ ongoing efforts to expand its project portfolio and strengthen its financial position.
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