Boston, MA 06/17/2014 (wallstreetpr) – U.S. financial regulators i.e. The Financial Industry Regulatory Authority (FINRA) is keeping a close watch on the share trading activity of Fire Eye Inc. (NASDAQ:FEYE). This is post to its announcement about its plans of purchasing $1 billion computer forensics and acquisition of company Mandiant Corp. Fire Eye Inc. is a cyber-security firm which investigates and deals into cyber threats.
The General Counsel of Fire Eye, Alexa King sent an email yesterday to individuals who had information about this acquisition before the company went into public. This was sent in reference to the inquiry sent by FINRA. As per the Ex Attorney, regular reviews are being conducted by FINRA post company announcements which can significantly impact company’s share movement.
These reviews are a part of fraud investigation plan which FINRA has been following up for several years now, the attorney added. A Fire Eye spokesman said that this is a very standard procedure and full cooperation will be given in this regard.
Why This Sudden Rise In Stock?
It should be noted that Fire Eye shares jumped up to 4.2% to $37.80 on the day post the Mandiant deal was declared and the coverage initiated with a “buy” rating with a Target price given as $45 by Financial Analysts. Financial Analysts consider Fire Eye Inc. to be unique with innovative positioning in consultation, detection and remediation of cyber breach cases. Fire Eye Inc. (NASDAQ:FEYE) is capable of fixing automated threats also by even penetrating the most demanding government authorities which act as big time influencers to several established corporate customers.
King’s email discloses more than 300 investment companies & individuals list. It also asked the recipients about the details of any contact they interacted between 23rd October 2013 and 02nd January 2014. This list also includes names of those individuals and firms which had a hint of the Fire Eye acquisition with Mandiant Corp.
Fire Eye Inc. (NASDAQ:FEYE) experiences a pullback recently on its shares. Lots of investors find it attractive to invest in its stock.