Digirad Corp. announced on Dec. 28 that it will change its corporate name to Star Equity Holdings effective from Jan. 1. Shares of the diagnostic imaging solutions company gained 2.5% in after-hours trading on Monday.
As a result of the name change, Digirad’s (DRAD) common stock will begin trading under the new ticker symbol STRR at the opening on Jan. 4. The company’s series A cumulative perpetual preferred stock will start trading under the new ticker symbol STRRP.
Digirad confirmed that the corporate name change would not affect the company’s stockholder rights. Meanwhile, the company’s healthcare division will continue to operate under the brand names Digirad and Digirad Health.
However, the company’s building & construction division, will be named Star Building & Construction.
Matt Molchan, the company’s CEO, will become CEO of Digirad Health, and David Noble will continue as the COO and CFO. Board Chairman Jeff Eberwein, will serve as Executive Chairman. Director Mitch Quain will be the lead independent Director for Star Equity Holdings.
“The new name reflects our business strategy and vision for continued growth.” noted Eberwein.
Last month, Maxim Group analyst Tate Sullivan reiterated a Buy rating on DRAD stock.
Sullivan’s price target of $6 remained unchanged implying that 116% upside potential lies ahead over the coming year. The analyst reduced the near-term estimates due to COVID-19 and lumber costs.
Sullivan forecasted a higher margin in 2021 of 8.3%, up from 6.7% in 2020E, based on expectations of increased sales of medical imaging cameras and more stable lumber prices in DRAD’s modular construction business.