AT&T shares rebound on Tuesday, company to buy threat-intelligence firm AlienVault

July 11, 2018 7:43 am

AT&T Inc (T) said on Tuesday it intends to buy privately held firm AlienVault, which is headquartered in San Mateo, California. AT&T did not reveal the terms of the agreement, but hinted it would probably not have a material effect on financial results.

AT&T shares closed higher for the fourth time in the past six trading sessions in New York on Tuesday. It has also been the sharpest daily surge since July 3rd. The stock went up 1.09% ($0.35) to $32.50, which was also the session’s high and a price level not seen since July 6th ($32.74).

Shares of AT&T Inc have retreated 16.41% so far in 2018 compared with a 4.50% gain for the underlying index, S&P 500 (SPX).

In 2017, AT&T Inc’s stock fell 8.58%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

The purchase will allow AT&T to improve its enterprise-grade security solutions portfolio and offerings to small and medium-sized companies.

The acquisition is to ensure a combination of AT&T’s cybersecurity solutions portfolio, which encompasses threat detection, prevention and response technologies, with AlienVault’s expertise in the field of threat intelligence.

“Regardless of size or industry, businesses today need cyber threat detection and response technologies and services”, Thaddeus Arroyo, Chief Executive Officer of AT&T Business, was quoted as saying in the company’s press release. “The current threat landscape has shifted this from a luxury for some, to a requirement for all.”

“AlienVault’s expertise in threat intelligence will improve our ability to help organizations detect and respond to cybersecurity attacks. Together, with our enterprise-grade detection, response and remediation capabilities, we’re providing scalable, intelligent, affordable security for business customers of all sizes”, Arroyo added.

The deal is expected to be finalized in Q3 2018.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $37.00, with a high estimate of $43.00 and a low estimate of $24.00. The median estimate represents a 13.85% upside compared to the closing price of $32.50 on July 10th.

The same media also reported that 17 out of 31 surveyed investment analysts had rated AT&T Inc’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the AT&T stock are presented as follows:

R1 – $32.53
R2 – $32.57
R3 (Range Resistance – Sell) – $32.60
R4 (Long Breakout) – $32.70
R5 (Breakout Target 1) – $32.82
R6 (Breakout Target 2) – $32.87

S1 – $32.47
S2 – $32.43
S3 (Range Support – Buy) – $32.40
S4 (Short Breakout) – $32.30
S5 (Breakout Target 1) – $32.18
S6 (Breakout Target 2) – $32.13

By using the traditional method of calculation, the weekly levels of importance for AT&T Inc (T) are presented as follows:

Central Pivot Point – $32.49
R1 – $32.99
R2 – $33.29
R3 – $33.79
R4 – $34.28

S1 – $32.19
S2 – $31.69
S3 – $31.39
S4 – $31.08

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