The shares of sensor system manufacturer Foresight Autonomous Holdings Ltd. (NASDAQ:FRSX) have suffered a significant price decline over the past few months. Current challenges faced by the automotive sector are casting a pall over the company’s growth prospects. In addition, given the company’s unstable financials and weak profitability, the question is will the stock be able to rebound in the near term? Read ahead to learn more.Headquartered in Israel, Foresight Autonomous Holdings Ltd. (FRSX) designs, develops, and commercializes sensor systems for the automobile sector. It produces in-line-of-sight vision systems and beyond-line-of-site cellular-based applications. In addition, it has a strategic collaboration with FLIR Systems (NASDAQ:FLIR), Inc. to develop, market, and sell the QuadSight vision system.
The company's shares have declined 40.2% in price over the past six months and 8.3% over the past month to close yesterday’s trading session at $2.98. Furthermore, FRSX is currently trading lower than its $3.05 and $4.94 respective 50-day and 200-day moving averages, which indicates a downtrend.
The prospects for the semi-autonomous and autonomous vehicle sector appear promising with the continued electrification of vehicles. However, current challenges confronting the automotive industry could curb FRSX’s growth this year and beyond. In addition, the company’s poor fundamentals and growth prospects could make matters worse.