NEW YORK (TheStreet) -- Luna Innovations (LUNA) rose 88.64% to $2.49, up $1.17 from its previous close of $1.32, at the close of the trading day on Wednesday after the company announced that it had sold its shape-sensing technology for medical applications to Intuitive Surgical (ISRG).
The stock had a volume of 6,654,202, which far exceeds its average of 51,587. It hit a one-year high of $3.36 and a low of $1.93 for the day. The stock also has a one-year low of $1.09.
Luna will receive $12 million upfront in two tranches from Intuitive Surgical and up to an additional $18 million based on specific technical milestones and commercial factors. Intuitive, in return, acquires Luna's fiber optic shape-sensing and localization technology and related patents. Intuitive will also hire engineers that Luna formerly used in its medical shape-sensing business. The sale also has language that keeps Luna's ability to handle its existing agreements and to continue to explore opportunities outside the medical field.
TheStreet Ratings team rates LUNA INNOVATIONS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate LUNA INNOVATIONS INC (LUNA) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."