The shares of AI wearables producer Wearable Devices (WLDS) skyrocketed by more than 60% on Thursday afternoon, hitting over $8. Just a few days ago, the stock traded at about $1.
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The surge in the company’s stock price comes a day after the company secured a patent in the U.S. for its technology that will enable users to interact with smart devices such as laptops and smartphones using gestures and voice commands.
With the patent, the Israel-based company hopes to be able to increase its market share in the consumer electronics and enterprise applications markets. Wearable Devices’ products are also utilized in digital gadgets such as Augmented Reality glasses, Virtual Reality headsets, drones, and robots, among others.
About a month ago, the company also obtained a patent for its neural interface technology. This technology enables users to control digital devices through subtle finger and wrist movements that are captured directly from the nervous system.
This means that physical gestures can be translated into commands without requiring touch. One of the benefits of such a technology is the accessibility solution it provides for persons living with severe disabilities.
Wearable Devices Sells 1M Shares
Meanwhile, Wearable Devices also registered a large transaction during trading hours on Thursday. The company sold one million of its ordinary shares through a direct offering to a single institutional investor. The shares were traded for $4.00 per share, with about $4 million expected from the transaction.
Furthermore, the AI-powered wearables maker plans to offer unregistered warrants that will give the buyer the right to purchase up to 1,000,000 ordinary shares of the company. The warrants will be designed to be immediately redeemable and will expire in five years.
Also related, on Thursday morning, trading in the company’s stock was temporarily halted due to extreme price fluctuations. However, trading resumed later in the afternoon.
What Does WLDS Stock Represent?
Meanwhile, TipRanks AI Stock Analyst gives WLDS stock a Neutral rating, with a score of 42 out of 100, pointing to its negative profit margin. The average WLDS price target is $1.50, which indicates an 83.41% potential downslide from its current level.
