NEW YORK, NY / ACCESSWIRE / April 20, 2018 / Shares of cyber security company FireEye were little changed on Thursday but the stock saw big gains earlier in the month after getting an upgrade and price target increase from a Morgan Stanley analyst. Shares of Inpixon saw big losses after announcing a public offering yesterday.
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Inpixon shares were clobbered yesterday, closing down nearly 35% on about 5.7 million shares traded. The stock was one of the biggest losers on the NASDAQ on Thursday after the leading indoor positioning and data analytics company announced the launch of a public offering. The public offering is the company's effort to satisfy NASDAQ's stockholders' equity requirement of maintaining a minimum of $2.5 million in stockholders' equity. It was also earlier this week that the company said its board of directors had authorized proceeding with a spin-off of its wholly-owned subsidiary, Inpixon USA, which is expected to be renamed "Sysorex, Inc." The company's CEO Nadir Ali remarked, "A technology company and a value-added reseller (VAR) company are two fundamentally different types of businesses. By separating them into two independent entities, we can empower them to realize their true potential with a single focus. We believe this spin-off will provide that opportunity. With this separation, Inpixon will be able to invest its capital and resources towards enhancing and developing its Indoor Positioning Analytics technology in order to deliver faster innovations and grow its customer base. Sysorex, with its own dedicated management team, can concentrate its efforts on pursuing distinct opportunities for procuring third-party products and value-added services for commercial and federal customers for long-term growth and profitability."
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FireEye, Inc. shares closed up a modest 0.05% on Thursday with a little over 2 million shares traded. The cybersecurity company had an exciting trading week last week seeing gains of 8%. it was at the end of last month that Morgan Stanley put out a research note on the stock and upgraded its 12-month price target from $18 to $21. Since that price target upgrade, the stock climbed heavily. The firm has an "overweight" rating on the stock. According to Morgan Stanley analyst Melissa Franchi, "At <5x CY19e recurring revenue, we see room for further upside and raise our PT to $21." Franchi said that FireEye's strengthened product portfolio, simplified marketing message, greater channel contribution and durable renewal base, give her greater conviction in the achievability, and room for upside, in the company's outlook for 12% billings and free cash flow growth through FY22.
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