Orbital Energy Group, Inc. (NASDAQ: OEG) is riding high on the tide of its recent announcement of a 700-miles huge fiber buildout project across Central Mississippi. The shares soared 76.7% on a record volume on Tuesday in the afternoon trading session. Texas-based Orbital Energy, the diversified energy platform, said that its acquired subsidiary, Gibson Technical Services, has won this project.
About the project
700 miles engineering and construction services fiber buildout project is the first RDOF project in the U.S. that highlights rural builds. The federal government, Rural Digital Opportunity Fund, is extended to the company from Connect America Fund. $20.4 billion of the fund is extended to the company in the next 10 years for the overall project. Project fund comes from TEC capital along with the federal monetary aid. This project is to be completed over the next four years for the company TEC of Jackson Inc. Its construction would begin this month onward.
Mike McCracken’s CEO said that this project underscores Orbital Energy Group’s ability to deliver quality engineering along with construction services.
What does it mean for the OEG Stock?
With the announcement, OEG has come on the biggest one-day rally with a trading volume of 173.0 million shares, which is the highest in the decade since the company went public in 1997. Over May, OEG had 1.4 million shares of full-day average volume. The OEG stock has almost tripled YTD, up 186.4%.
The investors are seeing the sunny side up for OEG in the next five years. Having it in the portfolio at the moment and hauling it for the next few years seems to be a wise decision. The company CEO is certain that the project will start generating revenue in the coming five years. This will reflect positively on investors. Given that the U.S. government is all up for extending broadband networks across rural communities, bagging this project is a good move.