The Bearish Case for Maxar Technologies (MAXR)

A descending triangle has emerged in the chart of Maxar Technologies Inc. (MAXR).  This is a bearish pattern and if the support level is broken, a breakdown could occur…

Maxar Technologies Inc. (MAXR) is an integrated space and geospatial intelligence company with a full range of space technology solutions for commercial and government customers including satellites, Earth imagery, geospatial data, and analytics.

The company is seeing strong demand from customers that rely on its products for national security and commercial missions. Going forward, it should leverage its satellite imagery capabilities to provide imagery data for Internet of Things (IoT) devices.

As of the end of the year, MAXR only had $27 million in cash. While short-term debt was only $8 million, its current liabilities are higher than its current assets, which is concerning. Though the company is highly profitable with a net margin of 17.6%.

In its most recent filing, earnings were up year over year, but still negative. Revenue fell 9%. For the current quarter, revenue is expected to rise 13%. The stock is also quite overvalued with a trailing P/E of 42.72 and a forward P/E of 526.32.

The stock has been trending upward over the past year, but has shown mixed momentum over the past two months.

Take a look at the 1-year chart of MAXR below with my added notations…

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