Inseego Corp. Closes $25 Million Private Placement With Mubadala Capital


After pulling back from a high of $9.50 to $5.03 on coronavirus fears, shares of Inseego Corp. (INSG) are starting to move higher. All on news it closed a $25 million private placement for the sale of Series E Preferred Stock to a private fund managed by Mubadala Investment Company’s asset management arm, Mubadala Capital.

The investment is expected to strengthen Inseego’s balance sheet, and provide it with enough liquidity to capitalize on the global 5G opportunity.

In addition, the company will release fourth quarter earnings after the closing bell today. Analysts believe INSG will post an eight-cent loss for the quarter (a year over year loss of 33.3%), on sales of $51.9 million (a year over year loss of 7.4%). And, on March 17, 2020, Chairman and CEO Dan Mondor will participate in a fireside chat at the 32nd Annual ROTH Conference in Dana Point, California on Tuesday, March 17, 2020. The company will also host one-on-one meetings with investors throughout that day.

Analysts Appear Bullish on INSG Stock

“After paving the way with our first generation of commercial 5G products, we’ve acquired a great deal of expertise around how to design and deploy the best solutions for different use cases – and deliver great end user experiences,” said Mondor. “Now we’re building on that foundation with a robust second-generation 5G NR portfolio of faster, smarter, smaller, innovative devices and solutions that deliver industry-leading 5G performance.”

Related: Inseego Corp. Reveals Its 5G Products at CES 2020

Analysts appear confident on INSG, as well. Roth Capital analyst Scott Searle for example just reiterated a buy rating, raising his price target to $9.50 from $7.50. Canaccord Genuity reiterated a buy rating on the stock with an $8.50 price target.

“Given the growing global 5G opportunity, we believe Inseego has strong global customer engagements for its growing 5G product portfolio… We believe Inseego will deliver very strong 2H/2020 and C2021 growth as global carriers launch 5G networks… We anticipate strong revenue growth in 2H/20 and beyond with expanding margins as the 5G opportunities ramp and the overall business scales,” noted Canaccord.

As of this writing, Ian Cooper does not have a position in shares of INSG.

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