Shares of Infinera Corp. (NASDAQ: INFN) jumped 12% Monday after a company executive purchased a significant number of shares. Specifically, an SEC filing Friday revealed Infinera CFO Brad Feller just spent over $206,000 to buy 25,000 shares at an average price of almost $8.25 per share. As of yesterday’s close, shares of Infinera had gradually drifted more than 12% lower since the company posted better-than-expected first quarter results last month. And that underperformance came despite at least one significant analyst upgrade since then.
Shares of Demandware Inc. (NYSE: DWRE) rose 10% to start the week following speculation it could be a takeout target. With shares of Demandware having drifted downward in recent weeks despite turning a narrower-than-expected Q1 loss earlier this month. Still, Demandware isn’t exactly cheap, trading around 16 times trailing 12-month sales and 340 times next year’s estimated earnings, and even that’s a big premium to pay for Salesforce, which itself is still striving to achieve sustained profitability. While such a deal could certainly fall into place, don’t count on it as a crucial part of your investing thesis. For now, I’m perfectly happy continuing to watch Demandware from the sidelines.
Shares of Zendesk (NYSE: ZEN) surged more than 17% early Monday. The stock settled to close up around 8%. So what: Zendesk priced its IPO last Wednesday at $9 per share, then jumped nearly 50% in its first day of trading. Given the recent broad weakness in tech stocks, many investors were encouraged by the cloud-based customer service software provider’s strong start Zendesk’s Form S1 reveals its top line is growing quickly, with 2013 revenue increasing 89% year-over-year $72 million. Still, that translated to a $22.6 million net loss over the same period, which means Zendesk has plenty of work to do as it strives toward sustained profitability.
Shares of Gogo Inc. (NASDAQ: GOGO) rose more than 10% early Monday, and then settled to close up around 6% after an analyst upgraded the in-flight connectivity specialist. As reflected in last week’s better-than-expected Q1 results, UBS analyst John Hodulik cite valuation and continued strength in Gogo’s business aviation segment. As a result, Hodulik upgraded gogo shares from “neutral” to “buy,” while at the same time curiously reducing his firm’s per-share price target on Gogo from $26 to $23. To be sure, to explain the near-term optimistic call, Hodulik notes that “Gogo represents an attractive way to play the growth in wireless data, given its long-term airline contracts and consumers’ desire to be constantly connected.”
Shares of cyber-security company KEYW Holding Corp. (NASDAQ: KEYW) jumped as much as 10% today after being upgraded by an analysts. Analysts at Chardan upgraded the stock from a “neutral” rating to “buy” and put a price target of $14 on the stock. That indicates a 31% upside from the stock price late in the day. Stock pops that are driven by analysts upgrades don’t often last long, and we saw that today, with shares trading up just 6% late in the day. I’ll also point out that revenue dropped 18% in the Q1 and the company lost $0.06 per share. Conditions may be improving, but I’d wait to see an actual turnaround before jumping in and certainly wouldn’t buy on an analyst pop today.
- The reason behind ruling of Tripadvisor Inc. (TRIP) over VMware, Inc. (VMW), Sprint Corporation (S), Activision Blizzard, Inc. (ATVI), salesforce.com, Inc. (CRM)
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