Tech Heavyweights May Be Stalking Imperva Inc (NYSE:IMPV); Stock Jumps 21%, More Upside Ahead


Shares in cybersecurity software maker Imperva Inc (NYSE:IMPV) zoomed higher by 21.13% on Friday following media speculation that the company was being stalked by deep-pocketed and big league tech companies.

A Bloomberg report claimed that Cisco Systems, Inc. (NASDAQ:CSCO) and International Business Machines Corp. (NYSE:IBM) were on the prowl to snap up IMPV, already looking to sell itself with the help of Qatalyst Partners.

Raytheon Company (NYSE:RTN)-backed Forcepoint, a rival cybersecurity firm, is also said to be in the fray to acquire IMPV, according to Yahoo Finance.

Understimated megabreaches, says Imperva Inc (NYSE:IMPV)

The cybersecurity industry was in the limelight after Yahoo! Inc. (NASDAQ:YHOO) admitted Thursday that hackers stole personal information associated with at least a half billion Yahoo accounts, making it the biggest data breach in history. The news may help to bolster the valuation of IMPV, currently poised at a market capitalization of $2.08 billion.

Significantly, IMPV’s move Friday took it past the level of $51.60 – a bugbear line in the sand that the stock has found difficult to take out in recent months.

Buyers piled into the stock Friday, which opened with a huge upside gap and traded 6.06 million shares, the highest since May 6, when 3.82 million shares changed hands. May 6 was also the date of the stock’s 52-week low of $31.11. IMPV has surged 68.95% since that low.

What’s the outlook now for the Imperva Inc (NYSE:IMPV) share price?

Technically, the stock looks poised to retrace most of the losses it suffered in the months of December 2015 and January this year, as sellers may be forced to reconsider their decision to bail from the stock.

However, institutions and mutual funds now own a whopping 87.20% of IMPV, including 7.22% (June 30, 2016) held by Paul Singer owned Elliott Management Corporation.

With so many shares in strong hands, it may not take much to light another rocket under the stock.

Recall Cisco CEO John Chambers’ famous quote: “There are two types of companies, those that have been hacked, and those who don’t know they’ve been hacked.”


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