FireEye Inc (FEYE) Shares Soar After Making $200 Million Acquisition


Shares of FireEye Inc (NASDAQ:FEYE) are up big today after the company announced the $200 million acquisition of iSight. iSight, which has previously been seen as a competitor of the cybersecurity company will certainly be a major boost to the service.

FireEye Inc (NASDAQ:FEYE) is a company run by CEO David G Dewalt. Prior to the acquisition they had approximately 2,500 employees, but this deal will bring several hundred more on board to help advance the company’s intelligence and analytics.

“This acquisition extends FireEye’s intelligence lead with an offering no one else in the industry can match,” David DeWalt, FireEye CEO and chairman explained. “The biggest mistake most people make is thinking threat intelligence is a collection of virus definitions in a shared database. Forward-looking security organizations — from governments to the private sector — know threat intelligence is the key to establishing a robust security posture tuned for the threats targeting each organization,”

This news has caused the stock to jump over 8% in the pre-market this morning. It should be interesting to see its performance as the day goes on. The stock closed at $14.87 during the last trading session. It is down 72.03% since June 16, 2015 and is downtrending. It has underperformed the S&P500 by 63.16%.

From a total of 20 analysts covering Fireeye Inc (NASDAQ:FEYE) stock, 8 rate it a “Buy”, 0 a “Sell”, and 12 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $65 while the lowest target price is $21. The mean of all analyst targets is $37.28 which is 150.71% above today’s ($14.87) stock price. Fireeye Inc was the topic of 32 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Wedbush maintained shares on January 11 with a “Neutral” rating. Morgan Stanley maintained shares with a”Equal-Weight” rating and a $26 target share price in their report from a November 5. Evercore initiated FEYE stock in a recent report from December 15 with a “Buy” rating. FBR Capital downgraded the rating on November 5. FBR Capital has a “Mkt Perform” rating and a $28 price target on shares. Finally, Imperial Capital maintained the stock with a “Outperform” rating in a report they issued on a November 6.

The institutional sentiment decreased to 1.31 in Q2 2015. It’s down 0.27, from 1.58 in 2015Q2. The ratio fall, as 73 funds sold all their FireEye Inc shares they owned while 86 reduced their positions. 41 funds bought stakes while 167 increased their total positions. Institutions now own 101.75 million shares which is 11.68% more than the previous share count of 91.11 million in 2015Q2.

Trellus Management Company Llc holds 12.83% of its total portfolio in FireEye Inc, equating to 274,788 shares. Terril Brothers Inc. owns 968,100 shares representing 9.97% of their total US portfolio. Moreover, Messner & Smith Theme Value Investment Management Ltd Ca has 5% of their total portfolio invested in the company, equating to 79,459 shares. The California-based Bodri Capital Management Llc has a total of 4.75% of their portfolio invested in the stock. Srs Investment Management Llc, a New York-based fund reported 4.48 million shares owned.

Since March 9, 2015, the stock had 0 buys, and 7 sales for a total of $21.03 million in net activity. Aziz Ashar sold 188,434 shares worth $5.50 million. Codd Ronald E F sold 3,000 shares worth $91,170. Mcgee John T sold 17,542 shares worth $749,203. King Alexa sold 13,000 shares worth $681,562. The insider Lentz Robert F sold 72,728 shares worth $3.50M.

FireEye, Inc. provides cybersecurity solution for detecting, preventing and resolving cyber-attacks. The company has a market cap of $2.39 billion. The Company’s cybersecurity solutions combine its virtual-machine technology, threat intelligence and security in a suite of services and products. It currently has negative earnings. The Company’s virtual machine technology delivers detection and prevention, and to provide real-time protection to enterprises and governments across the world.