Here's Why FireEye Stock Plunged Today
Shares of cybersecurity company FireEye (NASDAQ: FEYE) are plunging today after the company announced massive changes to its business. In short, it's selling some of its operations, buying back stock, and even changing its name to Mandiant. All of this change makes it hard to know what to expect from this company, which probably explains why the stock was down 15% as of noon EDT today.
Private equity firm Symphony Technology Group is buying the FireEye Products business (which comes with the FireEye brand name) for $1.2 billion in cash. In conjunction with this announcement, FireEye management also approved a plan to repurchase $500 million in its stock. This buyback program doesn't have an end date; shares can be bought back anytime at management's discretion.
Image source: Getty Images.
Source Fool.com
