SurgePays Inc. (NASDAQ:SURG) Stock Sees Selling Pressure At Higher Level
SurgePays Inc. (NASDAQ:SURG) fell 7% after the company offered an update on the preliminary rollout from the Emergency Broadband Benefit (EBB Program) distribution via its wholly-owned SurgePhone Wireless LLC subsidiary.
Market Stats
On Wednesday, SURG stock decreased 7% to $3.21 with more than 2.16 million shares, compared to its average volume of 1 million shares. The stock has moved within a range of $3.0300 – 3.3200 after opening the trade at $3.13.
Recent News
SurgePays conducted a limited rollout of EBB Program-sponsored devices in mid-August, generating $115,211 in revenue across four states. In the months of September and October, the launch accelerated in the states with the addition of more sales teams, resulting in total revenue of $2.42 million.
The company’s CEO, Brian Cox, said that it continues to exceed its internal subscribers projections and anticipates surpassing the 15,000 mark this month, representing a higher recurring revenue margin of $750,000.
Following the company’s recent equity raise of almost $20 million on proceeds, the company now has adequate capital to scale Surgephone subscriber count whole leveraging various growth opportunities. Additionally, considering the EBB program has had a massive impact, the company has ordered an additional 20,000 tablets for the rest of the year.Therefore SURG is worth watching.
Key Quote
“We continue to surpass our internal projections on subscribers and expect to eclipse the 15,000-customer mark in November, representing $750,000 in relatively higher-margin recurring revenue every month. Following our recent equity raise of nearly $20 million in gross proceeds, we now have available capital to ramp up the SurgePhone customer count while taking advantage of multiple growth initiatives and better execute on things in our pipeline,” commented SurgePays CEO Brian Cox. “Given the immediate and measurable impact from the launch of the EBB Program, we have ordered an additional 20,000 tablet devices to cover the remainder of the year. We plan to launch the EBB Program in ten additional states over the next 60 days and are exploring avenues to gain access to even more states that we could launch in over the next six months.”
Traders Corner
SURG stock is trading below the 20-Day and 50-Day Moving averages of $4.46 and $5.46 respectively. Moreover, the stock is trading below the 200-Day moving average of $7.55. The stock is down 44% in the past 3-month.