Markets

Sector Update: Tech

Technology stocks were paring narrow losses from earlier in Wednesday's session with shares of technology companies in the S&P 500 declining about 0.2% shortly before the close.

In company news, Image Sensing Systems ( ISNS ) rallied Wednesday, with shares of the traffic monitoring and safety company rising as much as 28% following a positive blog post speculating the stock could double in price over the next two months.

ISNS shares were up nearly 22% at $3.11 each shortly before the closing bell, earlier reaching a session high of $3.26 a share. The stock has traded within a 52-week range of $1.89 to $9.94 a share, retreating nearly 56% over the past year prior to today's advance.

In a Seeking Alpha article posted late this morning, small-cap investor Sujan Lahiri wrote ISNS is due for a late-year comeback after being beaten down to "deeply undervalued" levels because of what he believes are temporary headwinds and overly aggressive short selling.

Lahiri also said upcoming additions to its product line-up should have a "huge" impact on the company's share price, with multiple developments pointing to a successful turn-around at ISNS.

Key insiders have been taking advantage of the stock's bargain-basement prices recently to add to their personal stake, he said, adding a "short squeeze" - a situation where short-sellers are forced to buy shares in a rising market to honor redemption requests - could amplify the stock's upward movements.

Short-sellers held more than 654,000 ISNS shares short on Sept. 30, or roughly 13% of its outstanding stock, according to Nasdaq data.

In other sector news,

(+) UIS, Q3 net income of $47.8 mln, or $0.95 per share, reverses $11.6 mln net loss last year. Excluding one-time items, it earned $1.30 per share, beating consensus by $0.27 per share. Revenue grows 11% to $882.5 mln, topping Street by $40.5 mln.

(-) NSPH, Prices underwritten public offering of 40 mln shares at 50 cents per share, a 32.4% discount to Tuesday's closing price.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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