Synchronoss Technologies, Inc. (NASDAQ:SNCR)
Synchronoss Technologies, Inc. (NASDAQ:SNCR) shares slumped 41% after Siris Capital Group said it was no longer interested in acquiring the company. The announcement fuelled a sell-off of the stock as investors questioned the company’s long-term prospects after failing to report quarterly earnings since the start of the year.
Synchronoss Stock Performance
Tuesday’s sell-off pushed the stock near its all-time lows even as Synchronoss Technologies, Inc. (NASDAQ:SNCR) reiterated it was exploring a number of strategic options. The stock is already down by more than 60% for the year as it continued to trade in a strong downtrend close to its 52-week low of $9.76 a share.
A move by Siri to withdraw from the negotiations raised questions about Synchronoss Technologies, Inc. (NASDAQ:SNCR), given that it is the largest shareholder with a 13% stake. In a bid to prevent a further slump of the stock, the company says it is in active discussions with other parties as it continues to explore a wide range of strategic options
“The Synchronoss Board is committed to enhancing value for all shareholders and continues to explore a full range of strategic, operational and financial alternatives, which may include a sale of the Company or other transactions,” The company in a statement.
The statement did little to lift investor’s sentiments on the stock as the company continues to face a number of uncertainties. In addition to failing to post quarterly financial results, mass exodus of high-ranking executives is another headwind that continues to elicit investor concerns.
Early this year, the leader of mobile cloud innovation for mobile carriers, enterprises, and retailers announced that its CEO and CFO were stepping down after just a few months into the job.
Late last year Synchronoss Technologies, Inc. (NASDAQ:SNCR) announced the acquisition of IntraLinks holdings for $821 million. The company, later on, announced plans to divest a portion of the business to Sequential Technology International in a deal believed to have fetched as much as $146 million. It is still unclear how the remaining business has performed as the company is yet to issue a corporate and financial update.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $SNCR and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.