Talend S.A. shares rallied 27.5% in the last trading session to close at $65.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.1% gain over the past four weeks.
The surge in share price followed the news that Talend has agreed to get acquired by private-equity firm Thoma Bravo for $2.4 billion, which implies $55 per ordinary share and American Depositary Share in cash.
Talend has been benefiting from its growing cloud-based clientele. Its expanding partner base has also been a key catalyst.
Price and Consensus
This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $77.86 million, up 14.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Talend S.A., the consensus EPS estimate for the quarter has been revised 4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TLND going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>