NV5 Global Inc (NASDAQ:NVEE) shares advanced 10.39% to $30.08, showing stronger bullish momentum from last week’s climb.
NV5 Global Inc (NASDAQ:NVEE) shares are now at the top of the 52-week range of $15.00 to $30.21. The company has a market capitalization of $294.60 million at 8.28 million shares outstanding. It is a holding company that provides professional and technical engineering and consulting solutions to public and private sector clients.
On June 1, NV5 Global Inc announced that it acquired certain assets of X8e-Vinyard, a geotechnical consulting and construction materials inspection and laboratory testing services company. This deal is expected to add to the company’s earnings and was conducted almost entirely in cash. NV5 Global Inc CEO Dickerson Wright acknowledged that Vineyard is a very influential geotechnical engineering company in Albuquerque, providing services to a local and federal client base.
“We are very excited to join NV5. We will now have expanded technical capabilities and resources that will enhance the services we can provide to our clients,” said Robert Abeyta, CMT Operations Manager at Vinyard.
Why is this deal important?
Paul Fensterer, COO for Nuclear Environmental Services at NV5 Global Inc, explained that this could contribute substantially to the $3.5 million in annualized revenues the company expects to generate in their consolidated operations in Albuquerque. This could also allow the companies to leverage their mutual synergies and market positions to support their plans for growth and expansion.
Share prices could be poised for an upside breakout of their yearly range, sustaining their bullish momentum to achieve the next price targets. On its daily time frame, the stock bounced off the 100 simple moving average with RSI (14) still pointing north to indicate that buying pressure is still going strong. Also, NV5 Global Inc shares appear to have broken above a long-term bullish flag continuation pattern and that the next rally could last until $45-50.
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