SeaChange International Inc. (SEAC) stock rallied on the first day of the week. It gained 101.94% in the normal trading session and soared 11.54% more in the after-hours session on Monday.
Let’s try to find out the reasons behind this massive surging.
A recent multi-million-dollar contract
On March 29, 2021, SeaChange International announced that it has secured a multi-year, multi-million-dollar contract with one of the largest broadband service providers in the United States.
According to the agreement, SEAC will move its customers to a virtual platform which will help in reducing the hardware cost and service availability will be improved
Proposed Underwritten Public Offering of Common Stock
On March 29, 2021, SeaChange International announced the offer of sales of its common stock in an underwritten public offering. There are no other details yet announced about the pricing and the company seems to use the net proceeds for general corporate purposes
The sole book-running manager for the offering is Aegis Capital Corp.
Upcoming financial results
SEAC supposed to announced its fourth quarter and full-year 2020 results on March 2, 2021, but we haven’t seen any announcement yet neither company reschedule the announcement date.
About the company
Sea Change is a leading supplier of Video Delivery Software Solutions. It powers hundreds of cloud and on-premises platforms with live TV and video on demand (VOD) for millions of end-users worldwide. SeaChange’s “Framework” includes video processing, back-office, media asset management, dynamic advertisement insertion, analytics and a user interface.
The company is lead by Robert Pons who is Executive Chair, Principal Executive Officer and Chairman of the Board of the company. He holds 30 years experience of in senior-level management in reputable companies
Conclusion: The recent price hike is backed by the two news which we discussed already. SEAC stock price can go up depending on upcoming financial results which may be arriving anytime soon.