Bloomberg reported that Everbridge is exploring strategic options
Software name Everbridge Inc (NASDAQ:EVBG) is soaring today, up 12.4% to trade at $40.22 at last glance, after Bloomberg reported the company is currently exploring strategic options, including a potential sale. Stifel threw in a bull note after the news, raising its price target to $38 from $32.
Today’s pop has EVBG further removing itself from its Aug. 1, roughly five-year low of $24.10, and trading at its highest level since early June. Plus, the stock is gapping above the 100-day moving average, which has been pressuring the stock since November. Year-to-date, the equity remains down 40.2%, however.
Though short interest has been unwinding, down 18.8% over the past month, the 2.18 million shares sold short still account for 5.7% of the stock’s available float. Meanwhile, there is plenty of room for optimism amongst analysts, with eight of the 11 in coverage carrying a “hold” or worse rating.
Options bears appear to be betting on a correction, with 1,663 puts across the tape so far today — 24 times the intraday average in EVBG’s typically quiet options pits. The February 25- and 30-strike puts account for most of this activity, with new positions being bought to open at the February 35 put.
Image and article originally from www.schaeffersresearch.com. Read the original article here.