The stock soared by more than 50% on Wednesday after Giga-tronics announced a $3 million order that extended the ongoing production of its high performance YIG filters for an unidentified major aerospace company.
The company said it plans to begin shipments for the new order in September 2015. These orders will be fulfilled by the company's Microsource subsidiary in San Ramon, CA.
"We are pleased to have our customer's continued confidence in Giga-tronics to deliver this sole sourced product on time, while meeting their high standards for quality and reliability," President and CEO John Regazzi said in a statement.
More than 1.6 million shares had changed hands as of 10:31 a.m., compared to the daily average volume of 140,165.
Separately, TheStreet Ratings team rates GIGA-TRONICS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GIGA-TRONICS INC (GIGA) 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 generally high debt management risk and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: