Small Cap News Movers: Your Daily Digest of Stocks Making Moves on Market News
In this edition, we delve into the recent market-moving developments of seven trending small-cap stocks: Advance Auto Parts (AAP), Agilysys (AGYS), Hesai Group (HSAI), Navitas Semiconductor (NVTS), Ruanyun Edai Technology (RYET), Arqit Quantum (ARQQ), and Inozyme Pharma (INZY).
The past week has seen significant movements in the stock market, with several companies making notable gains and setting the stage for future growth. From automotive parts providers to biotech innovators, the companies highlighted in this article have each made headlines for their financial performance, strategic initiatives, and market reactions. Each company’s journey offers valuable insights into the current economic landscape and the strategies that can drive success in an ever-changing market.
1. Advance Auto Parts (AAP)
Market Cap as of May 22: $2.91 Billion
Advance Auto Parts (NYSE: AAP) is a leading automotive aftermarket parts provider serving both professional installers and DIY customers in North America.
BETTER-THAN-EXPECTED EARNINGS: Advance Auto Parts reported a first-quarter loss of $0.22 per share, which was $0.47 better than analysts’ expectations. Revenue of $2.58 billion was down by $770 million above expectations.
TRANSFORMATION PLAN AHEAD OF SCHEDULE: The company’s aggressive restructuring plan, which includes closing hundreds of stores and opening new ones in better locations, is progressing faster than anticipated.
REITERATED GUIDANCE: Despite the challenges posed by trade tariffs, CEO Shane O’Kelly emphasized the team’s focus and reiterated its guidance, which indicates that the restructuring plan remains on track, despite the dynamic economic environment created by tariffs.
LOW INVESTOR EXPECTATIONS: Shares had lost more than half their value over the past year due to poor results and macroeconomic concerns. The better-than-expected results and positive outlook led to a significant relief rally, with shares surging by about 46% on the earnings report.
POTENTIAL FOR FURTHER GROWTH: Even after the surge, the stock is still down by about 35% over the past year, suggesting potential for further gains if the company continues to meet or exceed expectations.
Stock Performance:
The stock rallied 41.44% this week and is up 48.70% for the month. It’s slightly positive YTD at 2.95% but still down 32.99% over the past year.
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2. Agilysys (AGYS)
Market Cap as of May 22: $2.90 Billion
Agilysys (NASDAQ: AGYS) provides enterprise-grade hospitality software solutions, including point-of-sale, property management, and inventory systems.
RECORD REVENUE AND SUBSCRIPTION GROWTH: Agilysys reported a record global sales year for fiscal 2025, with significant growth in subscription software and services. The company’s Q4 revenue increased by 19.4% year-over-year, marking the 13th consecutive record revenue quarter.
STRONG SUBSCRIPTION REVENUE: Subscription revenue grew by 42.7% in Q4, accounting for 64.4% of total recurring revenue. This growth in subscription revenue provides the business with more stability and visibility.
MODERNIZED POS PLATFORM: The company successfully modernized its point-of-sale (POS) platform, leading to improved sales momentum and customer satisfaction. This modernization has been a key driver in enhancing the company’s competitive position.
EXPANDED SALES AND SERVICES TEAMS: Agilysys expanded its sales and services teams, enhancing its capacity for future growth and improving customer support. This expansion is expected to drive further revenue growth and customer retention.
EXCEEDED ANALYST ESTIMATES: Q4 revenue of $74.27 million exceeded the Consensus Estimate of $71.28 million by 4.20%. EPS of $0.54 significantly beat the consensus estimate of $0.26, with a surprise of +107.69%.
STRONG PERFORMANCE IN KEY METRICS: Net revenue from subscription and maintenance was $46.20 million, surpassing the average estimate of $45.39 million. Professional services revenue of $17.83 million exceeded the average estimate of $15.85 million.
POSITIVE MARKET REACTION: The strong financial performance and positive outlook led to a 23.4% jump in stock price in the morning session. Despite the mixed guidance for fiscal 2026, the market’s positive reaction indicates confidence in the company’s ongoing transformation and growth potential.
Stock Performance:
Agilysys saw a 25.35% gain this week and 47.37% for the month. However, it’s down 21.28% YTD and has declined 15.14% over the last six months.
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3. Hesai Group (HSAI)
Market Cap as of May 22: $2.23 Billion
Hesai Group (NASDAQ: HSAI) is a China-based manufacturer of LiDAR sensors, mainly used in autonomous driving and ADAS systems.
HONG KONG LISTING INTENT: Hesai Group officially filed its intention to list publicly on the Hong Kong Stock Exchange. This move is expected to provide a safety net to investors, particularly ADR holders, by offering continued capital market access and trading liquidity.
POTENTIAL OFFERING: According to Bloomberg, Hesai Group is working with banks on a potential offering that could take place this year. The potential dual listing in Hong Kong could mitigate the risks associated with potential delisting from US stock exchanges due to geopolitical tensions between the US and China.
GEOPOLITICAL RISK MITIGATION: Hesai Group, like other Chinese companies, faces the risk of delisting from US stock exchanges due to ongoing tensions. The Hong Kong listing provides an alternative trading venue, reducing the impact of potential delisting on investor confidence.
PENTAGON BLACKLIST: Hesai Group was added to a Pentagon blacklist in 2023 over alleged military ties, an allegation which the company has debunked. The recent filing and potential Hong Kong listing could help to counter these negative perceptions and reassure investors about the company’s transparency and compliance.
Stock Performance:
Hesai shares rose 27.28% this week and 53.54% for the month. It’s up 59.88% YTD and a massive 422.34% over the past six months.
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Read Next: This Biotech Stock Took The Center Stage at the Planet MicroCap Showcase: VEGAS 2025
4. Navitas Semiconductor (NVTS)
Market Cap as of May 22: $836.28 Million
Navitas Semiconductor (NASDAQ: NVTS) designs and manufactures GaN-based power electronics for faster, smaller, and more efficient chargers and energy systems.
COLLABORATION WITH NVIDIA: Navitas Semiconductor has announced a significant collaboration with Nvidia (NASDAQ: NVDA) to use the company’s advanced gallium nitride (GaN) and silicon carbide (SiC) power semiconductors. These semiconductors will be used to support Nvidia’s 800V high-voltage direct current (HVDC) data center power infrastructure, capable of handling 1 megawatt computer racks and beyond.
TECHNOLOGICAL VALIDATION: Analysts from Deutsche Bank and Rosenblatt Securities have provided strong endorsements of the collaboration. Deutsche Bank’s Ross Seymore views the partnership as a “much-needed win” for Navitas, highlighting it as a significant validation of the company’s technology.
LONG-TERM GROWTH POTENTIAL: The collaboration is seen as a strong endorsement of Navitas’ GaN/SiC solutions, positioning the company as a key enabler for next-generation AI infrastructure.
POSITIVE ANALYST RATINGS: Deutsche Bank’s Ross Seymore maintained a “Buy” rating on Navitas stock with a price target of $3.50. This positive rating and price target suggest that the analyst sees substantial upside potential in the stock. Rosenblatt Securities: Kevin Cassidy also maintained a “Buy” rating but raised his price target from $4 to $6.
Stock Performance:
Navitas soared 109.14% this week and 132.75% over the month. It’s up 21.26% YTD and 143.21% over the last six months.
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5. Ruanyun Edai Technology (RYET)
Market Cap as of May 22: $492.75 Million
Ruanyun Edai Technology (NASDAQ: RYET) is a leading AI-powered education technology company in China, dedicated to transforming the K-12 education landscape.
AI-POWERED LEARNING: The company leverages proprietary AI solutions to provide intelligent learning tools, assessment platforms, and adaptive learning systems.
LAUNCH OF HANLINK IN SAUDI ARABIA: HanLink has announced support for Saudi Arabia’s local students with the skills needed to thrive in a globalized world.
PILOT PROGRAM SUCCESS: A four-week trial at Riyadh’s Education & Skills International School, involving 500 students from grades 1 to 12, yielded impressive results, including an 80% homework accuracy rate, an average oral proficiency score of 75/100, and 15 minutes of daily self-guided practice via the HanLink app.
EXPANSION PLANS: Following the pilot’s success, Ruanyun plans to expand HanLink to as many local schools in Saudi Arabia as possible.
Stock Performance:
Shares surged 87.50% this week and 116.35% over the past month. The stock is up 224.28% YTD.
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6. Arqit Quantum (ARQQ)
Market Cap as of May 22: $334.98 Million
Arqit Quantum (NASDAQ: ARQQ) develops quantum encryption technology to secure communications against future quantum computing threats.
CSFC-COMPLIANT MACP ARCHITECTURE: On 29 April, Arqit, in collaboration with Equus Compute Solutions and Intel, announced the world’s first quantum-safe CSfC-Compliant MACP Architecture for classified mobile communications.
COLLABORATION WITH INTEL: On 28 April, Arqit announced a collaboration with Intel to deliver quantum-safe protection enhanced by confidential computing, securing sensitive workloads at the chip level. This collaboration opens new opportunities in enterprise edge, AI workloads, network security, and critical infrastructure.
TIER 1 NETWORK OPERATOR CONTRACT: On 8 April, Arqit signed a three-year contract with a Tier 1 network operator operating in 32 countries, providing secure digital infrastructure.
MARKET AWARENESS AND QUANTUM THREAT: The pace of quantum computing development is accelerating, and Arqit is experiencing high levels of inquiry about its Arqit SKA-PlatformTM, with significant foot traffic at the RSA 2025 Conference.
MARKET OPPORTUNITIES: Beyond telecom and defense, Arqit is targeting financial services, pharmaceuticals, and data centers. The company envisions applying its symmetric key cryptographic solution across data in process, data in transit, and data at rest.
Stock Performance:
The stock climbed 73.92% this week and 80.97% this month. However, it’s down 32.21% YTD despite a 246.92% six-month return.
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7. Inozyme Pharma (INZY)
Market Cap as of May 22: $255.50 Million
Inozyme Pharma (NASDAQ: INZY) is a clinical-stage biotech company developing treatments for rare diseases related to abnormal mineralization.
ACQUISITION ANNOUNCEMENT: BioMarin Pharmaceutical (NASDAQ: BMRN) announced a definitive agreement to acquire all outstanding shares of Inozyme Pharma (INZY) for $4 per share in cash, totaling nearly $270 million. The deal is approved by the boards of directors of both companies and is expected to close in the third quarter of 2025.
EXPANSION OF ENZYME THERAPY PORTFOLIO: BioMarin will add Inozyme’s lead asset, INZ-701, to its pipeline. This investigational enzyme replacement therapy (ERT) is currently in a pivotal late-stage study for treating a rare genetic disorder, ectonucleotide pyrophosphatase/phosphodiesterase 1 (ENPP1) deficiency.
POTENTIAL FIRST-IN-DISEASE TREATMENT: ENPP1 deficiency affects blood vessels, soft tissues, and bones, and is associated with increased cardiovascular mortality risk, particularly in infants. Interim results from the late-stage study are expected in early 2026. If the data is positive, regulatory approval for INZ-701 is anticipated in 2027, making it the first-in-disease treatment for ENPP1 deficiency.
ADDITIONAL RARE DISORDER TARGETS: Inozyme is exploring the potential of INZ-701 in separate clinical studies for two more rare disorders: ABCC6 Deficiency and calciphylaxis. These conditions currently have no approved therapies.
COMMERCIAL SYNERGIES: The deal benefits Inozyme by providing access to BioMarin’s well-established commercial infrastructure and expertise, which Inozyme currently lacks. This will help Inozyme bring its drug to market more effectively and efficiently.
Stock Performance:
Inozyme soared 178.70% this week and 303.58% over the month. YTD, it’s up 42.87%, and 216.60% for the quarter.
