10 Hot Penny Stocks On the Move

3. Sequans Communications S.A. (NASDAQ:SQNS)

Share Price as of August 30: $0.96

Current Volume as of August 30: 2 million 

Number of Hedge Fund Holders: 8

1-Month Performance as of August 30: 92.28%

Sequans Communications S.A. (NASDAQ:SQNS) designs, manufactures, and supplies cellular semiconductor solutions primarily for the Internet of Things (IoT) markets. It provides 4G and 5G chips and modules for non-smartphone devices including RF Transceivers, System-on-Chip (SoC) Solutions, and LTE Modules.

The company’s semiconductor solutions have applications in smart mobility, logistics, smart cities, E-health, and more. It is based in Paris, France.

Sequans Communications S.A. (NASDAQ:SQNS) has gained significant investor attention since its latest earnings quarter, FQ2 2024 release. It has jumped up 92.28% during the past 30 days. A significant reason behind investors’ interest stems from Qualcomm Technologies acquiring Sequans’ 4G IoT technologies.

The company gets to maintain full ownership of the 5G intellectual properties and also retains the right to sell and enhance its existing 4G product portfolio. Management believes the transaction will enable the company to advance its Monarch, Calliope, and Cassiopeia 4G lines along with significant development to its 5G portfolio.

Moreover, it will also add significantly to the company’s balance sheet, providing it significant room for future growth. The quarter itself was encouraging as well. Sequans Communications S.A. (NASDAQ:SQNS) improved its revenue by 5.4% year-over-year, with License and services revenue accounting for 75% growth.

In addition, the gross profits of the company also grew from $7.5 million a year ago to $8.1 million, with operating loss decreasing significantly by around 31% year-over-year.

Moving forward management anticipates modest growth in the third quarter and much stronger growth in FQ4, due to the anticipated increase in products moving into mass production over the coming quarters.

The stock was held by 8 hedge funds in the second quarter of 2024, with total stakes worth $7.14 million. Lynrock Lake is the top shareholder with a position worth $4.36 million.