Nukkleus stock rockets higher along with majority star 26 capital effort

Software company Nukkleus (NUKK) is expanding its operations after acquiring a majority stake of 51% in defense company Star 26 Capital. It’s a big deal for NUKK, as Star 26 Capital owns Rimon, the supplier of critical components for Israel’s Iron Dome missile defense system.

Nukkleus paid a mix of cash and stock for its stake in Star 26 Capital. It includes a promissory note for shares in NUKK shares and warrants to acquire additional shares. The total value of this purchase came to $26 million with Star 26 Capital including an option for Nukkleus to acquire its remaining equity at a later date.

Nukkleus CEO Manny Shalom notes that this purchase is part of Nukkleus’ plan to transition from a software company to a defense company. She said NUKK will “capitalize on opportunities in the defense sector, which has seen rapid growth due to geopolitical shifts in the Middle East and the war in Ukraine.”

How this affects NUKK shares today

Nukkleus stock is soaring with today’s acquisition news, with shares of NUKK stock up 947.48% at the time of writing. However, the company’s shares are still down 29.52% year-to-date.

A significant factor behind the NUKK share’s rise is increased trading activity. As of this writing, more than 136 million shares of Nukkleus stock have changed hands. That’s an incredible increase from its three-month daily average trading volume of 586,290 shares.

While NUKK stock trades around $14.56, shares closed yesterday at $1.39, putting it in penny stock territory. This means that today’s rally may not last and the stock will pull back as the hype surrounding the Star 26 Capital stake begins to fade.

Are NUKK shares a buy, sell or hold?

There is not enough analyst coverage to provide a consensus answer to this question. Instead, let’s look at the technical analysis TipRanks offers. The overall consensus is Sell with 14 Sell, two Neutral and six Bullish indicators. The technical analysis consensus is Buy, while the moving average consensus is Strong Sell.

See more NUKK technical analysis data

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