FireEye News: 13 Things for FEYE Stock Investors to Know Today

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FireEye (NASDAQ:FEYE) is making waves on Friday following several bits of news about the company boosting FEYE stock.

Building of a FireEye Headquarters Office, cybersecurity company provides products and services to protect against advanced persistent threats and spear phishing

Source: Michael Vi / Shutterstock.com

Here’s all the news that investors in FireEye need to know about the company today.

  • First off, the cybersecurity company announced its acquisition of Respond Software.
  • Respond Software is a cybersecurity investigation and automation company behind the Respond Analyst software.
  • A FireEye news release sets the value of the deal at $186 million in a mix of stock and cash.
  • The company says this acquisition will bring its eXtended Detection and Response to a new range of customers.
  • In a separate news release, FireEye also announced a $400 million strategic investment led by Blackstone (NYSE:BX).
  • Blackstone is teaming up with cybersecurity investment firm ClearSky for the investment.
  • This investment gains the investors newly-created 4.5% Series A Convertible Preferred Stock of FireEye.
  • These are purchased for $1,000 per share and are convertible into normal shares of FEYE stock at a price of $18 per share.
  • FireEye says it plans to use funds from the deal to fuel its acquisition of Respond Software, as well as for other purposes.
  • To go along with this, Blackstone senior managing director Viral Patel is joining FEYE’s Board of Directors.
  • FireEye was also the target of a downgrade from Barclays analyst Saket Kalia.
  • This has the analyst dropping FEYE stock from an equal weight rating to an underweight rating.
  • However, the price target of $17 per share remains intact.

FEYE stock was up 6.7% as of Friday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/fireeye-news-what-to-know-about-feye-stock/.

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