Precision Optics Corporation Inc (OTCMKTS:PEYE) Stock Gains Momentum on Unusual Volume

Major manufacturer and designer of optical instruments Precision Optics Corporation Inc (OTCMKTS:PEYE) mainly works with the defense and medical industries. Yesterday the stock had come into focus among investors and had ended up with gains of as much as 3% for the day.

Market Stats

On Monday, PEYE stock gained 3.16% to $1.96 with more than 2k shares, compared to its average volume of 8k shares. The stock moved within a range of $1.9500 – 1.9600 after opening trading at $1.95.

Precision Optics Reports Second Quarter Fiscal Year 2022 Financial Results

In this situation, it ought to be noted that the company had come into focus after Precision Optics made an announcement with regards to the unaudited financial results for the second fiscal quarter of the year that had ended on December 31, 2021. It may be a good move to take a look at some of the highlights.

The financial results also included the contributions that had been made by Lighthouse Imagine, a company that Precision Optics had acquired back in October last year. Precision Optics managed to bring in revenues to the tune of $3.90 million in the quarter and that reflected a significant jump from the $2.79 million in revenues that it had generated in the prior year period. In this quarter, Lighthouse Imagine managed to contribute as much as $1.18 million in the form of revenues.

The optimism among investors with regards to the company’s stock is understandable at this point and it remains to be seen if the momentum is maintained.

Key Quote

Precision Optics’ CEO, Joseph Forkey, commented, “The results of the second quarter included a significant rebound in revenue from the first quarter, both from organic operations and from the acquisition of Lighthouse Imaging.  The integration with Lighthouse is going well and we expect the synergies of the companies to result in accelerated growth going forward.  Our earlier acquisition of Ross Optical positioned us well to target larger defense / aerospace opportunities, and last week we announced the first of these with receipt of a production contract from a large new customer with an anticipated initial run rate of $3 million per year.  Also, a number of customers for existing production products that had been stalled by the pandemic recently placed follow-on orders or indicated plans to do so in the near future.  Finally, we continue to have several programs in our engineering pipeline that are likely to move to production in the next twelve months – one of which received FDA clearance just two weeks ago.

Traders Corner

PEYE stock is trading below the 20-Day and 50-Day Moving averages of $1.09 and $2.33 respectively. However, the stock is trading above the 200-Day moving average of $1.95.