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IQE Shares Surged 7.49% Today As Buyers Stepped In, Here’s Why

Updated 30 Nov 2020
IQE plc logo

Shares of IQE plc (LON: IQE) surged 7.49% today despite the lack of major announcements by the company as buyers bought the semiconductor company’s shares as they anticipate positive developments from the company in future.

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Investors could also be reacting to the recent positive developments in the company such as the $10 million contract award from a client in the defence and military sector.

The company also recently announced that its long-term CEO will step down from his role once a replacement has been found after which he will assume the role of President and retain a seat on the company’s board.

IQE shares are up 40% this year having recovered from the 69% drop experienced in March at the onset of the global coronavirus pandemic.

Growth investors may be attracted to the semiconductor company give its latest rally, but value investors may take a more cautious approach given that IQE has a price-to-earnings ratio of 480, which is quite high.

Stock traders may benefit from the daily swings in the company’s stock price, while long-term investors may be best served to wait for a pullback before buying the semiconductor company’s shares.

IQE share price

Tradingview chart of IQE share price 30112020

IQE shares today surged 7.49% to trade at 70.30p having rallied from Friday’s closing price of 65.40p.

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