UPDATE: Feltl and Company Downgrades MIPS Technologies to Hold

Feltl and Company lowered its rating on MIPS Technologies (NASDAQ: MIPS) from Buy to Hold following quarterly results that suggested weakness ahead.

Feltl and Company noted, "Following earnings results we believe MIPS is focused on some type of patent transaction rather than the sale of the entire company. We believe potential upside from future patent monetization could be short-lived as investors would likely have to refocus on current operating model following “one-time benefit.” We believe patent monetization uncertainty creates a binary situation for investors with potentially more downside risk from current levels than estimated potential upside."

MIPS Technologies closed at $7.24 on Wednesday.