Why Spectral AI Stock Is Climbing

Spectral AI, Inc. (NASDAQ:MDAI) shares are trading higher Tuesday after the company announced a new U.S. government contract to provide additional support for the development of the handheld version of its DeepView Wound Imaging System.

The Details:

The contract is with the Defense Health Agency and the US Army Medical Material Development Activity and is valued at over $500,0000. The contract provides additional support for the development of the handheld version of DeepView Wound Imaging System called DeepView SnapShot. 

“Spectral AI is proud to partner with DHA and the USAMMDA on this crucial initiative. This award further validates Spectral AI’s technology and the importance of a battlefield burn solution we are focusing on,” stated Pete Carlson, CEO of Spectral AI. 

“We firmly believe that this collaboration will make a profound impact, as the miniaturization of medical devices is essential for introducing innovative medical care to a wider range of clinical settings and patients. This development reaffirms Spectral AI’s dedication to shaping the future of accessible medical care and solidifies its position as a trailblazer in AI-driven healthcare innovation,” Carlson added. 

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Is MDAI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Spectral AI‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Spectral AI (NASDAQ:MDAI) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Spectral AI will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

MDAI Price Action: According to Benzinga Pro, Spectral AI shares are up 13.4% at $1.95 at the time of publication.

Image: Brian Penny from Pixabay