Cxapp Inc (CXAI) looks to draw retail traders and shorts

Cxapp Inc (NASDAQ: CXAI) recently experienced a significant price increase of 94.25%, with the stock’s price rising from $13.85 to $20.57 (+$6.72). With a market capitalization of $100.319 million and an enterprise value of $100.099 million, CXAI is a small-cap company. These values indicate that the company’s size is relatively small compared to other players in the market. The CXApp platform provides a comprehensive array of technology-driven workplace experience solutions. These include a sophisticated enterprise employee app, indoor mapping capabilities, on-device positioning, cutting-edge augmented reality technologies, and an AI-powered analytics platform.

CXApp, a spinoff of Inpixon (INPX) began trading on the Nasdaq last month. This debut followed a merger with the special purpose acquisition company (SPAC), KINS Technology Group Inc.

Based on Shares Outstanding and Float, the company has 14,070K outstanding shares, while the float, which represents the number of shares available for public trading, is only 1,534K. This equates to a float percentage of 10.90%, signifying that a relatively small portion of the company’s shares are available for public trading (Source Barchart)

  1. Annual Sales and Net Income: CXAI’s annual sales are reported as $0K, indicating that the company has not generated revenue. However, the annual net income stands at $17,630K, suggesting that the company has been able to generate profit through other means.
  2. Last Quarter Sales and Net Income: The last quarter’s sales were also reported at $0K, while the net income was -$1,177K, revealing a loss in the most recent quarter.
  3. 60-Month Beta: With a 60-month beta of -0.34, CXAI exhibits a negative correlation with the market, implying that the stock tends to move in the opposite direction of the broader market.
  4. Insider and Institutional Shareholders: A significant 89.10% of the company’s shares are held by insider shareholders, while only 1.45% are held by institutional shareholders. This concentration of ownership may lead to less stock liquidity and increased volatility.
  5. Short Volume Ratio: The short volume ratio of 0.54 suggests that a modest portion of the stock’s trading volume is attributable to short selling, indicating that some traders may have a bearish outlook on the company.

In summary, the analysis of CXAI stock reveals a small-cap company with limited float and revenue generation, as well as concentrated ownership. The negative beta indicates that the stock behaves differently than the broader market, and a recent quarterly loss may raise concerns about the company’s performance. Additionally, the recent price increase of 94.25% may garner attention from investors. However, investors should weigh these factors carefully when considering CXAI stock as a potential investment.

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