Zayo Group (ZAYO) Stock: Soaring On Options Exploration

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Zayo Group Holdings Inc (NYSE: ZAYO) is having an incredibly strong day in the market today, and for good reason. The company announced that it would be postponing its analyst day as a result of an exploration of strategic options. Today, we’ll talk about:

  • The announcement;
  • what we’re seeing from ZAYO stock as a result; and
  • what we’ll be watching for ahead.

ZAYO Is Soaring On Strategic Options Exploration

As mentioned above, Zayo Group is having a very strong day in the market today after announcing that it would be exploring strategic options. The news came via press release early this morning.

In the release, ZAYO said that it will be postponing its Analyst Day. Analyst Day is currently scheduled for March 14, 2019. However, the company decided to postpone the event so that it can focus on the exploration of strategic alternatives aimed at increasing shareholder value.

The company said that while it explores strategic alternatives, it will retain a focus on organic growth of the company. In a statement, Dan Caruso, Chairman and CEO at ZAYO, had the following to offer:

Zayo’s purpose is to provide mission-critical bandwidth to the world’s most impactful companies. We accomplish this by executing a focused strategy centered on communications infrastructure. With our deep and expansive fiber networks in North America and Europe, we play a unique and compelling role at the core of our customers’ networks. Whether public or private, this will remain Zayo’s focus and we will continue to expand the depth and breadth of our fiber infrastructure.

Investors are excited about this news as can clearly be seen in various social networks and chat rooms across the web. The ultimate hope of investors seems to be that the strategic alternatives exploration will result in an acquisition of the company. However, there is no assurance that an acquisition will happen.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news is important. After all, it’s the news that leads to moves in the market.

In the case of Zayo Group, the news proved to be positive. After all, the company is exploring strategic alternatives, which in many cases, leads to listing the company for sale and looking for accretive acquisitions.

So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:02), ZAYO is trading at $26.99 per share after a gain of $2.58 per share or 10.57% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on Zayo Group. In particular, we’re interested in the company’s work to provide value to shareholders through the strategic options exploration. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!

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