Citrix Systems, Inc. (NASDAQ: CTXS)
Citrix Systems was off to a relatively rough day in the market today. When the trading session started for the day, the stock was already trading slightly red. From there, it bounced up to the green before falling red and going on slow, yet steady declines. However, things started to change in a big way minutes ago as the stock started to climb. Below, we'll talk about what we're seeing from CTXS, why, and what we'll be watching for ahead.
What We're Seeing From CTXS
As mentioned above, Citrix Systems was off to what seemed like it was going to be a tough day in the market today. At the opening bell, the stock was in the red before bouncing up to the green. However, that didn't last long, as the stock went on slow, yet steady declines that lasted throughout most of the trading session. Nonetheless, that all changed minutes ago as the stock started to rocket toward the top. Currently (3:41), CTXS is trading at $87.49 per share after a gain of $7.96 per share (10.01%) thus far today.
Why The Stock Is Headed Up
As is normally the case, our partners at Trade Ideas were the first to alert us to the upward trend that's happening on CTXS. As soon as we were notified of the movement, the CNA Finance team started working to see what was causing the movement. In this case, the story pretty much jumped out at us. It seems as though the gains are the result of excitement surrounding a potential sale.
At the moment, news is breaking that Citrix Systems has hired Goldman Sachs. The reason for the hire was to explore strategic alternatives - most importantly, the sale of assets or the company as a whole. Of course, this is overwhelmingly exciting, as a sale like this will come at a hefty premium, returning value to shareholders. As a result, investors are sending the stock skyward.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CTXS. In particular, we're interested in learning if the company and Goldman Sachs will decide that a sale is the best option, and if so, who would buy the company. As always, we'll continue to follow the story and bring the news to you as it breaks!
Update 4:14: News is breaking that not only has CTXS hired Goldman Sachs to explore a sale of the company, they have already reached out to potential suitors. The stock closed the day at $84.93 per share after a gain of $5.40 per share, or 6.79%. In after hours, it is trading at $85.11 per share after a gain of $0.18 per share (0.22%) thus far.
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