Azzet reports on three stocks with price moving updates today.
Electro Optic Systems tanks after resuming trading today ~
When Electro Optic Systems (ASX: EOS) resumed trading today, after a multi-day trading halt, the market made no secret of what it thought of the defence stock’s response to the short-seller Grizzly Research report, posted at 10.36 am AEDT (11:36 pm GMT) this morning.
A fall of around 12% immediately after posting today’s update follows on the heels of a 16% fall on Friday when the company denied media speculation that it may capitalise on strong growth in defence spending in Europe by shifting its headquarters and stock market listing from Australia to Europe.
However, by 1:36 pm AEDT (2:36 am GMT), the stock had retraced losses to be up 8%.
While EOS acknowledged strong growth in European defence demand, it told the market that no final decisions have been made to shift its headquarters to Europe.
Underpinning today’s announcement was a somewhat more sobering response to allegations by Grizzly Research on 6 February, which alleged that several major contracts announced by EOS last year, including a US$80 million laser contract in Korea and the acquisition of the MARSS Group, were "intentionally misleading" and "unrealistic".
In its statement to the ASX today, EOS rejected the allegations and accused Grizzly of publishing the short report without any prior enquiry to the company.
“EOS rejects the misleading, manipulatory and pejorative conclusions contained in the Grizzly Report,” the company said in the statement.
“EOS is concerned that Grizzly may have acted unlawfully and breached corporations laws in Australia and Germany (where EOS trades on the Frankfurt Open Market). EOS has directed legal advisers in Australia and Germany to consider all available legal remedies.”
While EOS acknowledged that its share price increased from $1.31 on 2 January 2025 to a high of $11.02 on 13 January 2026, the company rejects entirely the statements made by Grizzly regarding the reasons for movements in the EOS share price.
EOS believes that changes in the EOS share price are due to a wide range of factors, including, but not limited to:
- Changes in global defence spending, driven by conflicts and changes in geopolitics.
- Changes in technology, including the growth in drone warfare.
- Announcements made by EOS to the ASX about changes in EOS business, including new contract wins (detailed below).
- Changes in global macroeconomic conditions and other factors.
Leading up to today's expected announcement, EOS has reached several significant milestones:
- Singapore Manufacturing Hub: On February 9, 2026, EOS officially launched a new centre of excellence in Singapore dedicated to the manufacturing, integration, and testing of high-energy laser capabilities.
- Acquisition of MARSS Group: In mid-January 2026, EOS announced a binding agreement to acquire MARSS, a European provider of AI-enabled command and control (C2) systems for counter-drone use, for an upfront payment of roughly $54 million.
- EOS told the market that Grizzly Report’s assertions with regard to historical MARSS revenue are fundamentally flawed because they ignore revenue earned by MARSS entities in Monaco and Saudi Arabia and only record revenue from the UK business.
- Financial Performance: The company's December 2025 quarterly report showed a net operating cash inflow of $19.3 million and a total contract backlog exceeding $459 million.
Following completion on 31 January 2025, and after full repayment of the debt facility, on 31 January 2025, EOS had approximately $128 million of cash balances on its balance sheet.
Within today’s market update, management reassured investors that the company has worked hard to successfully turn around the company from 2022, including:
- Strengthening the balance sheet.
- Commercialising latent intellectual property.
- Bolstering sales and marketing capabilities, amongst other things.
“As a result, EOS has seen increased order intake during 2025 and grew the order book to $459m at 31 December 2025,” the company said.
“EOS is in full compliance with its continuous disclosure obligations and has sought to be and will continue to be highly transparent with its shareholders.”
Following a period of extreme growth - soaring over 600% in 2025 – the stock became a high-profile target for activist short sellers as it reached record highs in January 2026.
Electro Optic Systems has a market cap of $1 billion; the share price is up 299% in one year and down 35% in the last week.
While the stock’s 200-day moving average is trending higher, there is significant evidence that the long-term bullish trend is near an end.
Specifically, recent price action has been weak, and the 5-day moving average is below both the 20 and 50-day moving averages.
Consensus is Strong Buy
G8 Education plunges after flagging major impairment
Shares in G8 Education (ASX: GEM) were trading 17.1% lower after the childcare operator flagged a $350 million non-cash goodwill impairment.
The impairment reflects updated assumptions on occupancy, supply and demand, fee growth, higher wages and rising regulatory and compliance costs.
Management also told the market that it was scrapping its final dividend and putting its on-market share buyback on ice to counter weaker occupancy and rising costs.
The market appears to have overlooked reassurance that the company does not expect any impact on its FY25 (lease adjusted) earnings, which are expected to be between $91 million and $98 million, and will not impact the company's financial covenants with lenders.
What the market may have forgotten today is that a non-cash impairment does not directly change the day-to-day cash flow generated by the centres.
However, what clearly spooked investors today were signals that the earnings outlook may have softened.
What the market will clearly be looking for when it releases its FY FY25 financial results on 23 February 2026, are insights into any material shift in underlying market dynamics, the capital management outlook and any updates in future M&A activity.
Astute investors will have already concluded that the financial hurdles confronting the business make it attractive to bargain-hunting suitors.
The share price has fallen around 49% over the past year, reaching lows near $0.64 by February 6, 2026.
G8 Education has a market cap of $414 million; the share price is down 60% in one year.
Sentiment among investors has been weak, resulting in a bearish-sloping 200-day moving average.
More recently, the stock has fallen dramatically enough to register in the oversold region of the Stochastic Oscillator.
This is positive in that it means the recent momentum is unsustainable and there could be a near-term rally.
Consensus is Moderate Buy.
Region Group jumps after lifting FY26 guidance
Shares in Region Group (ASX: RGN) - formerly known as SCA Property Group - were trading 2.2% higher this afternoon after the internally managed Australian real estate investment trust (A-REIT) upgraded its earnings outlook for FY FY26, lifting forecast funds from operations to 16.0¢ per security from 15.9¢, which implies 3.2% growth on FY25.
A solid first half to 31 December 2025 saw the REIT report with revenue from ordinary activities rising 2.0% to $195.8 million and net profit attributable to members more than doubling to $180.0 million.
Funds from operations - a key measure of underlying performance - increased 4.0% to $91.4 million, which supported a higher interim distribution of 6.9 cents per security and a 5.8% lift in net tangible assets per security to $2.56.
Basic earnings per security climbed 118.3% to 15.5 cents, while weighted average FFO per security edged up 3.9% to 7.9 cents, reflecting improved earnings quality.
Meanwhile, management’s decision to suspend the Distribution Reinvestment Plan suggests a preference for cash payouts during the period.
Commenting on today’s market update, management told the market that the REIT remain concentrated on delivering defensive, resilient cash flows to support secure and growing distributions.
To achieve this, the REIT will focus on:
- Improving comparable NOI through strong leasing, increased fixed rent reviews and proactive expense management.
- Curating its portfolio through selective acquisitions and disposals.
- Reinvesting in our centres to drive value.
- Growing our funds under management.
- Maintaining a proactive approach to capital management.
Mid-January the REIT told the market that Greg Chubb will commence as CEO and managing director on 9 March 2026.
The REIT delivered a strong FY25 result, featuring a statutory net profit after tax of $212.5 million and an increase in assets under management to $5.2 billion.
Region Group has a market cap of $2.7 billion; the share price is up 10% in one year and up 4% in the last week.
The stock’s shares are in a downtrend confirmed by multiple indicators.
Consensus is Hold.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
