Should I Buy CPSH? CPSH 2026 Analysis

Should You Buy CPS Technologies Corp (CPSH) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

5.100

1 Day change

15.91%

52 Week Range

6.850

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient entry: momentum is weakening (MACD negative and expanding) and price is breaking below near-term support.
Despite bullish longer-term moving average structure, near-term downside risk looks higher than upside until CPSH reclaims ~5.00–5.75.
Options positioning is mixed (call-heavy open interest but put-heavy volume), suggesting uncertainty rather than a clean bullish bet.
No Intellectia proprietary edge today: AI Stock Picker and SwingMax both show no signal, so there’s no high-conviction tactical trigger to buy immediately.

Technical Analysis

Trend/Momentum: MACD histogram at -0.0842 and negatively expanding → bearish momentum building.
RSI: RSI(6) ~38.94 → drifting toward oversold but not a clear reversal signal yet.
Moving averages: SMA_5 > SMA_20 > SMA_200 → structurally bullish, but near-term momentum is contradicting that (suggests pullback within a broader uptrend).
Key levels: Current price 4.92 is below S1 (4.978) and well below pivot (5.746). Next support is S2 (4.503). Resistance overhead: ~5.75 then ~6.51.
Pattern-based short-term odds: Similar-pattern projection implies mild negative drift (next day -0.51%, next week -2.43%, next month -1.04%).

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Positioning: Extremely low put/call open interest ratio (0.03) indicates call OI dominates (bullish/levered long positioning or covered call dynamics).
Flow today: Put/call volume ratio 2.73 with small absolute volume (41 total; puts 30, calls 11) → near-term traders leaned defensive even though longer-dated OI is call-heavy.
Volatility: Very high IV (30D IV ~117.89) vs HV ~99.51; IV percentile ~45 and IV rank ~19 → elevated, but not at peak relative to its own history.
Activity spike: Today’s volume vs 30D avg ~~16.47x and open interest elevated vs average (~~120.53) → attention is high, but direction is conflicted.

Technical Summary

Sell

Buy

Positive Catalysts

suggests the broader trend can still be constructive if support holds.

Neutral/Negative Catalysts

with a -6.01% regular-session drop signals near-term weakness and poor timing for an impatient buy.

Financial Performance

Latest quarter: 2025/Q3.
Revenue: 8,803,695, up +107.29% YoY → strong top-line acceleration.
Net income: 207,964, down -119.94% YoY → major deterioration vs prior year (suggests the prior-year quarter was meaningfully stronger and/or this quarter saw margin/expense pressure).
EPS: 0.01, down -114.29% YoY → earnings power weakened materially.
Gross margin: 17.07, down -238.56% YoY → margin compression is the key fundamental red flag; the market may demand proof of margin stabilization before re-rating.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent change: [2025-11-13] Roth Capital initiated coverage at Buy with a $6 price target.
Street pros view (bull case): Mission-critical materials exposure (aerospace/defense/industrial) and evidence of a growing commercial base; large revenue growth supports the narrative.
Street cons view (bear case): The latest quarter shows severe profitability and gross margin deterioration, which can cap upside until execution improves.
Net takeaway: Analyst tone is positive but currently outweighed by near-term technical weakness and margin-driven fundamental risk for an immediate buy.

1 Analyst Rating

Wall Street analysts forecast CPSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CPSH is 6 USD with a low forecast of 6 USD and a high forecast of 6 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 4.400

Low

Averages

High

Current: 4.400

Low

Averages

High

Roth Capital

NULL -> Buy

initiated

AI Analysis

2025-11-13

Reason