One of this afternoon’s top market movers is Qualys (QLYS) due to a report that it is exploring a potential sale. The security and compliance IT company is considering a takeover bid, according to a report from Bloomberg. This development has pushed shares up significantly, though as of this writing, few details have been provided. But if the company moves toward the sale, shares are likely to surge even more.
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What’s Happening with Qualys Stock?
After several months of slight volatility and little growth, Qualys stock has finally garnered significant momentum. QLYS stock has surged 24% in just a few hours following news of the potential sale. Today’s momentum has continued in after hours trading. Over the past week, shares began to slowly trend upward, although they did not rise by too much until this afternoon.
The report notes that Qualys is currently weighing options for the sale and working with advisors. However, Bloomberg‘s sources add that “deliberations are still in the early stages and Qualys could decide not to pursue a sale.” As of this writing, the buyer has not been named, which suggests that they will remain anonymous until the deal progresses.
Bloomberg adds that the trend of consolidation in the cybersecurity sector is expected to rise. Escalating geopolitical conflicts across the globe may continue to compel companies to continue investing in cybersecurity services to protect their data. The recent election of Donald Trump will likely spur this trend even further if his policies lead to cyber attacks from hostile nations.
Is Qualys Stock a Buy, Sell, or Hold?
Wall Street remains sidelined on Qualys, even as the potential sale looms. Analysts have a Hold consensus rating on QLYS stock based on two Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After shares declined 9% over the past year, the average QLYS price target of $138.69 per share implies 13% downside potential.
