The share price of cybersecurity company Forescout Technologies (Nasdaq: FSCT), which was founded by Israelis and maintains a development center in Tel Aviv, closed 12.77% up in New York yesterday after two investment firms teamed up in what looks like an activist investor move in the company.
Forescout, which provides security and control solutions for connected devices in enterprises, lost about a third of its market cap this month following the release of a profit warning. The two New York investment firms, Corvez Management and Jericho Capital, together hold 14.5% of Forescout, according to a filing with the US Securities and Exchange Commission (SEC).
According to the filing, Corvex raised its holding after the collapse of Forescout's share price, at prices of $25-26 per share, having previously bought shares at $34-37. Corvex has in the past been an activist investor in Danone and Allergan.
The two firms said that they expect to meet Forescout's management to discuss its business as soon as possible. They say that they see Forescout's stock as undervalued.
Forescout has been traded on Nasdaq for two years, and has a market cap of $1.2 billion. According to the profit warning it recently published, its third quarter revenue will be in the range of $90.6-91.6 million instead of $98.8-101.8 million in its previous guidance. The company sees an operating loss on a GAAP basis of $17.8-18.2 million, and $1.4-1.6 million on a non-GAAP basis.
Published by Globes, Israel business news - en.globes.co.il - on October 22, 2019
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