As the HUB Cyber Security (HUBC) stock price jumps, is it a buy?

HUB Cyber Security (NASDAQ: HUBC) stock price has staged a strong recovery in the past few days after the company made several important actions recently. It has soared from the year-to-date low of $0.6943 on April 3rd to a high of $1.30. The rally continued on Monday in the pre-market session, rising by over 40% to $1.80.

HUB Security is a small Israeli company that provides confidential computing and cyber security professional services. Its top products include the HUB Secure File Vault, which helps companies to protect their data-driven workflows. 

The company also provides the HUB Guard, which helps to assess cyber resilience, mitigate threats, and respond to incidents. The other services are the Attack Surface Management, and Governance Risk Management.

HUB Cyber Security, which is a small company valued at over $12.6 million, has become a popular name among day traders. Data shows that its daily volume has continued rising in the past few months.

On Friday, over 30.7 million shares exchanged hands. For the week, the volume stood at over 54 million shares. A week earlier, the number of HUBC shares that were traded was over 111 million.

A closer look at key platforms like StockTwits, Reddit, Barchart, and Yahoo Finance shows that it was one of the top trending stocks. Its performance brings memories of other penny stocks that became highly popular among traders like Bit Brother, Phunware, and Mullen Automotive.

HUB Cyber Security has made several actions in the past few weeks that have helped boost its popularity. Earlier this month, the company secured $8 million in debt to supercharge its global growth.

The new cash injection happened after the company completed its acquisition of QPoint Technologies, a company that provides cybersecurity solutions. It provides its solutions to companies to Rafael Advanced Defense Systems, the developer of the Iron Dome system.

Therefore, the HUBC stock is likely rising because of last weekend’s attack by Iran, which the Iron Dome worked well.

HUBC chart by TradingView

The HUB Cyber Security’s shares have bounced back in the past few days. It remains sharply below its all-time high of $31. It has crashed by over 94% from its highest point in 2023 as its business has slowed and losses have mounted. 

Data by Yahoo Finance shows that its total net loss in the trailing twelve months (TTM) stood at over $129 million. Its EBITDA loss jumped to over $108 million. 

At the same time, the Average Directional Index (ADX) has drifted upwards as it has remained below all moving averages. Therefore, the outlook for the stock is still bearish, with the next target being the year-to-date low of $0.7180.

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