NEW YORK (TheStreet) -- Giga-Tronics (GIGA) shares are falling sharply, down 17.88% to $2.25, in afternoon trading on Wednesday as investors took profits from the stock's rally following the release of the flight navigational system manufacturer's fourth quarter earnings results on Monday.
The San Ramon, CA-based company shares rose as high as 24% yesterday after it reported a first quarter net profit of 3 cents per share, 26 cents better than the 23 cent per share loss it reported during the same period last year. Revenue for the period increased 48% to $4.3 million from $2.9 million in the year ago period.
Today's reversal mirrors last week's 20% decline in the trading session following the company's 50% share price increase after it announced a $3 million order that extended the ongoing production of its high performance YIG filters for an unidentified major aerospace company.
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: