Enterprise software company Everbridge Inc. ( NASDAQ: EVBG ) fell 1% dropped for a third straight day after skyrocketing 17% on Friday on the heels of a report about M&A interest.
Everbridge surged on Friday after a Bloomberg report that said the company is exploring "strategic options" that could include a sale.
The pullback in Everbridge ( EVBG ) also comes after Truist issued a note early Tuesday that cautioned investors about a potential takeout and the possible downside if one doesn't occur.
... "If nothing happens on the M&A front in the near term, we believe Friday’s stock pop could prove fleeting," Truist analyst Terry Tillman, who has a hold rating on the shares wrote in a note. Tillman also raised his price target on the shares to $38 from $31.
Tillman highlighted two other fintech names that saw a pop on M&A speculation in recent months, including nCino ( NCNO ) and QT Holdings ( QTWO ), but the companies' shares "have more than given up gains post the press reports."
The potential Everbridge ( EVG ) sale comes after activist investor Ancora had been pushing the company to explore a sale before it was defeated in a proxy battle in May. Ancora in March called for the public-warning technology company to sell itself . Ancora at the time said it believed the company may be worth $70 a share in a takeout.
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Everbridge drops for a third day after surge on M&A report