Market Overview

Imperva Shares Plunge Below $40 Amid Sale Concerns

Imperva Shares Plunge Below $40 Amid Sale Concerns
Related IMPV
The 8 Most Undervalued Tech Stocks That Protect Your Data
35 Biggest Movers From Yesterday
JPMorgan downgrades Imperva and Adobe (Seeking Alpha)

Shares of Imperva Inc (NYSE: IMPV) tanked more than 15 percent in the pre-market trading on Wednesday after concerns were raised on the possible sale.

According to a Bloomberg report, the sale process has been put on a hold, as the company is seeking increased deal price. The cybersecurity firm has improved its sales outlook after lowering its outlook in July.

While Imperva has boosted deal value expectations, potential suitors are asking whether the company could be in a position to deliver sustained growth to fulfill the increased deal value expectations.

Meanwhile, JPMorgan commented that the company should deliver consistent revenue growth at least for a couple of quarters before seeking a higher price. Therefore, analyst Sterling Auty expects the stock to come under heavy pressure.

Related Link: How AWS, Azure, Google Cloud Adoption Will Impact The Security Market

On October 3, BTIG predicted that premium could be minimal for any possible takeover of Imperva citing that shares have jumped approximately 23 percent after a report of potential sale.

On July 11, Bloomberg reported that Imperva was exploring the possibility of selling itself following the pressures exerted by activist investor, Elliott, in the preceding month. Reports indicated that Cisco Systems, Inc. (NASDAQ: CSCO) and International Business Machines Corp. (NYSE: IBM) were among those interested in acquiring the company.

At last check, IMPV dropped below the $40 level at $39.20 losing 15.97 percent.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for IMPV

Dec 2017JP MorganDowngradesNeutralUnderweight
Nov 2017Morgan StanleyMaintainsUnderweightUnderweight
Oct 2017PiperJaffrayDowngradesOverweightNeutral

View More Analyst Ratings for IMPV
View the Latest Analyst Ratings

Posted-In: Analyst Color News M&A Analyst Ratings Movers Tech Media Trading Ideas Best of Benzinga


Related Articles (CSCO + IBM)

View Comments and Join the Discussion!

Partner Center