FireEye (FEYE) Stock: Gaining On Takeover Offer


FireEye Inc (NASDAQ: FEYE)

FireEye is having an incredibly interesting day in the market today, to say the least. When the trading session opened for the day, the stock was already trading in the green. However, it quickly spiked downward to the red before recovering and doing it again. And then the stock started to spike upward in a big way minutes ago. Below, we’ll talk about what we’re seeing from FEYE, why, and what we’ll be watching for ahead.

What We’re Seeing From FEYE

As mentioned above, FireEye is having a great time in the market at the moment. At the open of the market, the stock was already trading well into the green. However, it quickly fell to the red before recovering and repeating. Nonetheless, that repetition seems to be over, as the stock is spiking upward at the moment. Currently (10:36), FEYE is trading at $11.58 per share after a gain of $0.35 per share (3.12%) thus far today.

Why The Stock Is Spiking Upward

As is usually the case, our partners at Trade Ideas were the first to alert us to the gains on FEYE. When we got the alert, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it didn’t take long to dig up the story. The gains seem to be the result of a takeover offer that broke seconds before the run!

In a report on Zero Hedge, it was announced that FireEye has received a takeover offer. The offer came from LifeLock, and it was a pretty good one with a strong premium. In fact, LifeLock said that it is willing to pay $16 per share in a takeover of the company. If this deal goes through, it will return tremendous value to shareholders.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on FEYE. In particular, we’re interested in learning whether or not the company will take the offer. After all, with such a strong premium, chances are high. Nonetheless, we’ll keep a close eye on the story and continue to bring you the news as it breaks!

Update 11:46 – FEYE is taking a dive as news broke that LifeLock had interest in the company months ago, but is no longer interested in the acquisition. At the moment, the stock is trading at $11.45 per share after a gain of $0.22 per share (1.96%) thus far today.

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