CNH Industrial $CNHI Stock Up On $3.6 Million Deal

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CNHI stock popped more than 3% in early trading on February 8, 2022, after the company announced it was awarded a $3.6 million contract.

Raven Industries Awarded $3.6M Radar Subcontract

On February 8, 2022, Raven Industries, Inc. (the Company) announced that Aerostar Technical Solutions, Inc. (Raven Aerostar) has secured a subcontract with a value of $3.6 million for products to TCOM L.P. for the KSA Modified Persistent Surveillance Systems – Tethered (PSS-T) Large Systems in Saudi Arabia under a Foreign Military Sales program with the U.S. Army.

Raven Aerostar Vista F Tcom Aerostat X

The Sioux Falls, South Dakota-based company will provide its Vista F25 radar systems for the PSS-T system throughout a five-year period of performance with a work completion date of March 23, 2027. A subsequent task order award is anticipated to supply spares, integration support, reach-back support, training and sustainment.

“Raven Aerostar’s advanced radar systems are designed to cut through the clutter, filtering out unwanted data, and focusing on tracks that matter so operators can prioritize their mission — often times in defense, security, intelligence and safety applications,” said Jim Nelson, Division Manager of Raven Aerostar. “International border security programs like these fulfill our mission to connect, protect and save lives around the globe.”

Using advanced algorithms, Vista F25 radar systems provide early detection of defined targets and movement at long ranges. In addition to offering unprecedented range detection and tracking performance, these advanced systems provide extremely low false alarms, can be controlled remotely, and operate from a diverse set of platforms such as towers, vehicles, ships, UAVs and aerostats.

PSS-T supports military communications, force protection, intelligence, surveillance and reconnaissance activities. It is designed to collect information from multiple sensors and interoperate with other aerial and unattended ground radars.

Raven Industries provides innovative, high-value products and systems that solve great challenges throughout the world. Raven is a leader in precision agriculture, high-performance specialty films, and aerospace and defense solutions, and the company’s groundbreaking work in autonomous systems is unlocking new possibilities in areas like farming, national defense, and scientific research. Since 1956, Raven has designed, produced, and delivered exceptional solutions, earning the company a reputation for innovation, product quality, and unmatched service. Raven is a subsidiary of CNH Industrial N.V. (NYSE: CNHI / MI: CNHI), a global capital goods company specializing in equipment and services for Agriculture and Construction.

CNH Industrial 2021 Fourth Quarter and Full Year Results

CNH Industrial reported Q4 adjusted EPS of 25c versus the consensus estimate of 20c. The company reported Q4 revenue of $9.07B versus the consensus estimate of $4.37B.

“I am proud of, and profusely thankful for, how our CNH Industrial team managed through a difficult year. Between external challenges: COVID, supply chain, etc. and internal opportunities: spin, Raven acquisition and integration, and our customer focused reorganization, they rose to every occasion while still exemplifying our renewed focus on delivering for our customers and dealers. Their efforts drove Company record revenue and earnings per share, and it is especially rewarding to generate such results in our final year as a combined entity. This performance represents a solid foundation for both Iveco Group and CNH Industrial’s future success, particularly as it includes our second consecutive year of net cash, with over $1.7 billion of positive free cash flow of Industrial Activities for 2021. In Q4 we outperformed expectations by managing our supply chain, specifically microchip shortages, better than anticipated, and while these pressures are likely to persist, so is our team’s demonstrated ability to overcome them. With continued strength in our end markets and order books, and a comprehensive strategy for the future, CNH Industrial is excited to enter 2022 as a pure play in agricultural and construction equipment,” said CEO Scott Wine.

📺 CNH Industrial CEO on acquiring Raven Industries in $2.1 billion deal

CNH Industrial CEO on acquiring Raven Industries in $2.1 billion deal

📉 CNHI Stock Technical Analysis

Cnhi Stock

The short-term trend is negative, as is the long-term trend. CNHI is part of the Machinery industry. There are 150 other stocks in this industry, CNHI did better than 51% of them. CNHI is currently trading in the lower part of its 52-week range, which is not a good signal. Agreed, the S&P500 Index is also not doing fantastic, but it still sitting in the middle of its 52-week range.

There is a support zone ranging from 14.79 to 15.07. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.

There is a resistance zone ranging from 15.43 to 15.60. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also a resistance zone ranging from 16.14 to 16.32. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is resistance at 17.41 from a horizontal line in the daily time frame. Finally, there is resistance at 19.14 from a horizontal line in the daily time frame.

Although the technical rating is bad, CNHI does present a nice setup opportunity. CNHI stock has a Setup Rating of 6 out of 10. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 14.84, a Stop Loss order could be placed below this zone. Click here to sign up for email alerts on when CNHI stock consolidates and has a Setup Rating of 8 or higher.

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