Updated from 11:21 AM EDT.
NEW YORK (TheStreet) -- Shares of DragonWave (DRWI) were soaring 100% to $4.42 on heavy trading volume mid-afternoon Thursday after the company's equipment was selected by Sprint (S) for network deployment.
The Ontario-based company is a provider of packet microwave solutions for Internet protocol (IP) networks.
Sprint will use DragonWave's microwave backhaul equipment as part of its strategy to significantly densify its network through deploying small cells and other solutions, according to a company statement.
Densification allows Sprint to keep pace with rising demand for data and gives customers more capacity and faster data speeds in targeted high-traffic locations.
"Microwave backhaul is a cost-efficient, reliable alternative when used in the right ring structures, and it's a key part of the extension of our overall toolkit as we work to provide customers with more consistent coverage, better reliability, and even faster data speeds," Sprint's COO of Technology Gunther Ottendorfer said in a statement.
Additionally, DragonWave stock was upgraded to "hold" from "sell" at Desjardins today, the Fly reports. The Sprint contract could be big enough to return operations to a cash neutral position, the firm said.
More than 18.73 million of DragonWave's shares changed hands so far today vs. its average 30-day volume of 42,662 shares.
Shares of Sprint were declining in mid-afternoon trading today.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D- on DragonWave stock.
The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DRWI