Borqs Technologies (NASDAQ:BRQS) Stock Consolidates After The Recent Jump

Shares of Borqs Technologies (NASDAQ:BRQS) ended with a marginal gains, extending its monthly gain to 16%.

Market Stats

On Monday, BRQS stock gained 2.24% at $0.6262 with more than 13.65 million shares, compared to its average volume of 4.59 million shares. The stock has moved within a range of $0.6130 – 0.6900 after opening the trade at $0.6527.

Major News

Borqs Technologies (NASDAQ:BRQS), which focuses on 5G semiconductor chip design, Internet of Things (IoT) solutions, and innovative clean energy, has made a major announcement. Borqs Hong Kong Limited, the company’s wholly owned subsidiary, has acquired land use rights for around 1.4 million square feet in Huzhou, China, a city located in the Yangtze River Delta.

The Yangtze River Delta is one of the rapidly expanding industrial regions globally; with 1/10th o f China’s population housed there, and accounts for 1/5th of the country’s GDP. As per the grant agreement, the land use rights given to Borqs’s 5G Industrial Park has a value of US$10.5 million.

Development is set to take place in two phases.  The first phase will include IoT and 5G technologies, with construction set to begin in 2022, and being completed by the end of 2023. The next phase is for software and hardware products for the electric vehicle industry. Construction for second phase begins after completion of construction of the first phase.

Total construction space is about 2.2 million square feet, with a value of US$125 million. The company is busy selecting and evaluating bids from developers for the industrial park. This project keeps up with macroeconomic trends, along with increased demands for connected solutions and zero carbon economy.

Traders Corner

BRQS stock is trading below the 50-Day and 200-Day Moving averages of $0.65 and $1.04 respectively. However, the stock is trading above the 20-Day moving average of $0.61. The stock is up 15% in the past month.