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Sequans Communications SA (SQNS) does not present a strong buying opportunity at this time for a beginner investor with a long-term strategy. The stock's technical indicators are bearish, financial performance is weak, and hedge funds are selling. While analysts maintain buy ratings with reduced price targets, the company's fundamentals and recent performance do not align with a compelling long-term investment case. It is better to hold off on investing in SQNS for now.
The technical indicators for SQNS are bearish. The MACD histogram is negative, RSI is neutral at 24.383, and moving averages indicate a downward trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support levels (S1: 3.149) with resistance levels far above (R1: 4.402).

Share repurchases and planned debt reduction could support the stock in the long term.
and implied volatility (168.92), indicating uncertainty.
The company's financials are weak. Q4 2025 revenue dropped 36.7% YoY to $6.96M, and Q3 2025 revenue dropped 57.45% YoY. Net income and EPS have also declined significantly, with gross margin down 50.38% YoY.
Analysts maintain buy ratings but have significantly lowered price targets. B. Riley reduced the target to $8, Lake Street to $13, and Roth Capital to $20, citing weaker sales licensing outlook and modest IoT ramp expectations.