Why Is BIO-key International Stock Surging Tuesday?

BIO-key International Inc. (NASDAQ:BKYI) stock surged more than 130% in Tuesday’s premarket trading after the identity-security provider announced a new Middle East government agency customer.The company did not disclose the financial terms of the agreement.Government Security Contract Expands Middle East PresenceBIO-key said Tuesday that a government security agency selected its multi-factor authentication and single sign-on platform to protect access to critical communications infrastructure, including web-based services.The company secured the agreement less than two months after initial discussions.IT Harmony, BIO-key’s distribution partner in the Gulf region, supported the evaluation and deployment process.The new customer joins BIO-key’s growing portfolio of government and financial-sector clients across the Middle East, including several major defense organizations.BIO-key International Managing Director Alex Rocha said the deployment is nearing completion. He added that positive customer feedback reflects the company’s efforts to build long-term relationships with government institutions across the region. See More: Top Value Stocks Heavy Trading And Short Interest Fuel VolatilityTrading volume in BIO-key surged to 31.13 million shares Tuesday, more than 11 times its 100-day average of 2.73 million shares.The micro-cap company had a market capitalization of approximately $2.37 million at the previous close.Meanwhile, short interest represented 71.29% of the stock’s public float, raising the potential for a short squeeze as shares climbed.The unusually heavy trading volume, high short interest and small market capitalization underscore the stock’s elevated volatility and risk of sharp price swings.BIO-key International Price ActionBIO-key International shares jumped 131.52% to $3.82 in Tuesday’s premarket trading, according to Benzinga Pro data.Photo via Shutterstock Read Also: Why UnitedHealth Group Shares Are Trading Higher; Here Are 20 Stocks Moving Premarket