Neonode (NEON) stock plummeted on Thursday after the optical sensing solutions company announced the results of a patent lawsuit between Samsung (SSNLF) and Aequitas Technologies subsidiary Neonode Smartphone. The lawsuit is related to patents licensed to Aequitas Technologies by Neonode in 2019.
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While Neonode wasn’t a part of the lawsuit against Samsung, it’s still able to receive 50% of the settlement via its agreement with Aequitas Technologies. As a result, the company expects to receive $15 million to $20 million from this lawsuit. The company’s board of directors has yet to decide what will be done with the funds gained from this settlement.
Additionally, Aequitas Technologies also has a similar patent infringement lawsuit against Apple (AAPL) that is still ongoing. Depending on the results of this case, Neonode could obtain additional funds from a settlement or damages if Aequitas Technologies wins this case. However, there’s no guarantee this will happen or that Aequitas Technologies will beat Apple in court.
Neonode Stock Movement Today
While a payout from a lawsuit settlement would seem like an easy win for Neonode, investors appear unhappy with the results. This has NEON stock down 77.51% in pre-market trading on Thursday, following a 4.67% rally yesterday.
Today’s strong movement came alongside heavy trading, as some 12 million shares changed hands. That was well above its three-month daily average of about 284,000 units.
Is Neonode Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Neonode is Hold, based on a single Hold rating over the past three months. With that comes an average NEON stock price target of $24, representing a potential 11.52% upside for the shares.
