Satellite communication systems maker SatixFy jumps after new contract

Quotes on SatixFy, an Israel-based small cap that makes satellite communications systems and is listed in the U.S., jumped more than 12% yesterday, March 17, after the company announced a new contract with Canada’s MDA Space, whose technology is used in OneWeb and Telesat Lightspeed satellites for space-based internet.

Yesterday, SatixFy soared more than 12% to $1.36 per share on the New York Stock Exchange. Early in the session, it was up over 25% before the momentum eased. In premarket trading today, the stock has dipped 0.7%.

The gains were triggered by the company’s announcement of a new contract with Canada’s MDA, along with an expansion of an existing agreement, worth a total of over $10 million. Under the terms of the contracts, SatixFy will provide engineering models and space-grade chips for MDA Space to integrate into its satellites.

SatixFy develops next-generation satellite space and ground communications systems, including multi-beam digital space antennas, flat-panel user terminals, and modems based on powerful in-house designed chipsets.

In its most recent earnings report, for the first nine months of 2024, the company posted a 4% year-over-year decline in revenue to $8.5 million and a 36% increase in gross profit to $6.2 million.

MDA Space provides technology and services to the space industry. For example, its products are used in OneWeb satellites of Europe’s Eutelsat, which, like Elon Musk’s Starlink, offers satellite-based internet connectivity. For the year to date, Eutelsat stock is up more than 155% on the Paris stock exchange. MDA also collaborates with Canada’s satellite internet provider Telesat and conducts Earth and space monitoring for corporate and government clients.

SatixFy has worked with MDA since 2023. In October 2024, the companies announced two contracts: an initial $9 million deal, followed by another $10 million agreement. SatixFy’s clients also include the UK Space Agency, which in March awarded the company GBP1.8 million (about $2.4 million) for the development of advanced software.

SatixFy stock is down 11% since the start of the year but still up more than 138% over the last 12 months.

According to MarketWatch, the two analysts who cover SatixFy both rate it a “buy.” Their average target price is $2.50 per share, almost 84% above the closing price yesterday.