Oklo Inc. (NYSE:OKLO) stock edged higher in Tuesday’s premarket session after the stock climbed 5.52% in Monday’s regular trading session.
The modest gain came as broader market futures were little changed, with Nasdaq futures down 0.04% and S&P 500 futures nearly flat.
Oklo Expands Sodium Engineering Expertise With CEI Acquisition
On Tuesday, Oklo announced it acquired Creative Engineers Inc. (CEI), a specialist in sodium and alkali-metal engineering, to strengthen capabilities for its Aurora sodium-cooled fast reactor program.
Financial terms of the deal were not disclosed. OKLO held cash and cash equivalents of $1.59 million as of March 31, 2016.
The deal adds expertise in liquid-metal systems, fabrication, testing, and research, which Oklo said will help accelerate commercialization, improve design efficiency, and reduce execution risk.
CEI, which has generated positive free cash flow for more than five years, will continue serving its existing nuclear industry customers while joining Oklo’s expanding technical organization.
“CEI brings specialized sodium- and alkali-metal engineering capabilities that are directly relevant to Oklo,” said Oklo co-founder and CEO Jacob DeWitte. “They have already been a strong technical partner, and bringing that expertise in-house will help accelerate our path to commercialization.”
Technical Picture Remains Weak
Despite Monday’s rally, the stock continues to trade below its key moving averages, signaling that the longer-term trend remains under pressure.
The stock traded at $53.02, about 9.6% below its 20-day simple moving average (SMA), 18% below its 50-day SMA, 14.6% below its 100-day SMA, and 37.1% below its 200-day SMA.
The moving averages remain in a bearish alignment, with the 20-day SMA below the 50-day SMA and the 50-day SMA below the 200-day SMA following a death cross in February.
Momentum also remains soft. The moving average convergence divergence (MACD) indicator sits below its signal line, suggesting buying momentum has weakened.
Technically, $63 remains a key resistance level near the 50-day moving average, while $45 serves as important support near the stock’s 52-week low.
Analyst Outlook
The stock carries a Buy consensus rating with an average analyst price forecast of $97.60. Recent analyst actions include Guggenheim initiating coverage with a Neutral rating, UBS maintaining Neutral while lowering its price forecast to $55, and Wedbush reiterating an Outperform rating with a $110 price forecast.
Oklo ETF Exposure
Oklo is a meaningful holding in the Global X Uranium ETF and the VanEck Uranium & Nuclear ETF. Fund inflows and outflows can influence demand for the stock.
OKLO Stock Price Activity: Oklo shares were up 0.49% at $53.02 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment