What Is Coda Octopus, and Why Did Its Stock Skyrocket Today?
Shares of Coda Octopus Group CODA were up more than 60% through early afternoon trading Monday, already significantly off intraday highs but still garnering plenty of attention as many investors learn about the innovative technology firm for the first time.
Coda Octopus develops underwater technologies powered by real-time, 3D sonar capabilities. These technologies help deliver solutions for complex subsea surveys, marine construction, dredging, and more.
According to Coda’s website, the company has been delivering products to the global offshore market for nearly two decades. It is best known for owning the patent to the Echoscope, an advanced 3D underwater imaging device.
About a year ago, Coda Octopus announced that its common stock had been approved for listing on the Nasdaq Capital Market. As a part of this uplisting, the stock switched to the “CODA” ticker and began officially trading in this manner on July 19, 2017.
Today, the stock skyrocketed toward a 10-year high after the sonar technology provider signed a research & development pact with the U.S. Navy.
Coda’s deal with the Navy will focus on transitioning the company’s Divers Augmented Vision Display-Head Up Display system (DAVD-HUD) into operational use. Under the terms of the agreement, the DAVD-HUD prototype will evolve into a first-generation operating device in no more than a year.
“This is a seismic shift as it paves the way for standardization of our real-time 3D sonar products into this very important market,” said Coda CEO Annmarie Gayle.
Shares of Coda Octopus were down more than 21% on the year heading into the week. News of the deal sent the stock skyrocketing to an intraday peak of $8.44 per share, up more than 100% from Friday’s close.
Other firms operating in the same industry include Sonardyne Corporation, iXBlue, and Teledyne Technologies TDY.
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