POET Technologies Inc. (NASDAQ:POET) stock slipped on Thursday following the company’s announcement of a registered direct offering of common shares.
This news has contributed to the stock’s decline as broader markets edged higher, with the Nasdaq gaining 1.01% and the S&P 500 up 0.67%.
POET Targets Acquisitions with New Funds
POET Technologies announced it has entered into securities purchase agreements with institutional investors for the purchase and sale of 20,689,656 common shares, expected to yield gross proceeds of approximately $150 million. The company plans to utilize the net proceeds for corporate development, including targeted acquisitions and scaling up research and development.
The offering is anticipated to close on or about January 23, 2026, and is aimed at expanding POET’s institutional investor base while accelerating its high-speed optical module and light source businesses.
Dr. Suresh Venkatesan, Executive Chairman & CEO, highlighted the substantial opportunities for growth, both internally and through acquisitions, to enhance shareholder value.
He stated, “This offering is expected to expand our institutional investor base by attracting several new fundamental investors. With a substantial base of cash, we plan to accelerate our pursuit of targeted acquisitions, add to our capabilities and talent base, vertically integrate our products with differentiated components, and expand operations to pursue revenue opportunities across the board, in order to bring long-term value to shareholders.”
POET’s Bullish Technical Indicators
The stock is currently trading 4.2% above its 20-day simple moving average (SMA) and 22% above its 100-day SMA, indicating a strong longer-term trend. Over the past 12 months, shares have increased by 53.58% and are currently positioned closer to their 52-week highs than lows.
The RSI is at 67.34, in neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: N/A
- Key Support: $6.50
POET’s Earnings Expectations and Analyst Views
Investors are looking ahead to the next earnings report.
- EPS Estimate: Loss of 6 cents (Up from Loss of 48 cents YoY)
- Revenue Estimate: $0.62 million (Up from $0.03 million YoY)
Analyst Consensus & Recent Actions:
The stock carries a Buy Rating with an average price target of $5.83. Recent analyst moves include:
- Northland Capital Markets: Outperform (Raises Target to $7.00) (Dec. 2, 2024)
- Craig-Hallum: Buy (Raises Target to $5.50) (Nov. 22, 2024)
- Northland Capital Markets: Initiated with Outperform (Target $6.00) (Nov. 18, 2024)
POET Price Action: POET Technologies shares were down 7.77% at $7.72 on Thursday, according to Benzinga Pro data.
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