Castellum Inc (OTCMKTS:ONOV) Stock Moves Up 9% In a Week: But Why?

In the past week, the Castellum Inc (OTCMKTS:ONOV) stock had been a strong mover and managed to record gains of as much as 9%. However, it seems that the stock could continue to be in focus among investors considering the fact that on Monday, the company announced strong financial results for the quarter that had ended on September 30, 2021.

Market Reaction

On Monday, ONOV stock gained 1.61% to $0.24 with more than 26k shares, compared to its average volume of 41k shares. The stock has moved within a range of $0.2205 – 0.2440 after opening trade at $0.2440.

Castellum, Inc. Announces Record Financial Results

In the third quarter, Castellum managed to deliver a record breaking performance as it managed to generate revenues of as much as $7.38 million. However, that was not all. The company also managed to generate adjusted EBITDA of positive $100,000 for the quarter.

It should be noted that it was a significant figure since Castellum managed to stay in positive adjusted EBITDA territory despite having transaction costs of as much as $300,000. The company reported that at the end of the quarter it had a cash balance of as much as $3.65 million and the current assets under its control made up $8.25 million. Last but not the least, the net working capital in its books at the end of the quarter stood at $3.91 million. The contribution from two acquisitions had also been a factor in the strong performance from Castellum.

Key Quote

“Our business continues to grow, with strong results,” said Mark Fuller, President and CEO of Castellum. “Revenue grew in Q3 with our two closed acquisitions, continued solid performance from our continuing business, and positive adjusted EBITDA despite incurring significant costs associated with our two acquisitions. Our liquidity, overall balance sheet, and income statement continue to improve. Q4 should see further progress as we realize a full quarter of benefit from the SSI (Specialty Systems, Inc.) and Merrison acquisitions without the same one-time costs. This continued growth, additional acquisitions in our pipeline, and a bright forecast for 2022 lays the groundwork for further growth and improvement in the Company going forward.”

Traders Review

ONOV stock is trading above the 20-Day and 50-Day Moving averages of $0.22 and $0.23 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.18. The stock is up 9% over the past month.

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