The last time Ocean Power Technologies, Inc. (NASDAQ: OPTT) delivered news of any significance was on July 25 when it announced that it has established a presence in Houston, Texas to more effectively support the Company’s oil & gas business development activities.
At the time of the big announcement OPTT confirmed that 28-year veteran David Marchetti, OPT’s new Director of Global Applications, will manage the Company’s daily business development activities in Houston. The news went down well somewhat with investors as the stock rallied to close up 8% on the day.
OPTT has been relatively quiet since then and it wasn’t until today that the stock really showed some willingness to push back on the poor trading that has permeated its presence on Wall Street since around February. On Wednesday OPTT opened at 1.25 before rallying to a high of 1.45 on very high volume. By the end of the trading session the stock had pulled back to a low on the day of 1.24, recovered slightly to close at 1.42, all while racking up a significant show of interest from investors who pushed volume on the day to a whopping 2.11M shares. We say significant volume because average volume for OPTT was steady at 306K for the last 30 days, on average.
What caused the massive spike in interest is difficult to pin down but there was some macroeconomic news and some industry specific news that might be feeding into the upbeat sentiments surrounding the stock. There is still so ways to go, though; OPTT is still down 51% YTD and the only sharp show of movement is taking place over the short term. This is i=evident in the company’s two short term moving averages, the DMA 20 and the DMA 50. The current chart movement puts the figures for both at 9% and 5%, respectively. Contrast that with the DMA 200 which is down a significant 36%.