BUZZ-Cybersecurity co Check Point falls after $1.5 bln convertible deal unveiled
Check Point Software Technologies' shares fell 3.4% in extended trading after announcing a $1.5 billion convertible bond offering. The company plans to use proceeds for capped call transactions, share repurchases, M&A, and product development. Check Point has a market cap of $20 billion, with mixed analyst ratings and a median price target of $225.
Shares of Check Point Software Technologies (CHKP.O) down 3.4% in extended trading to $180.89 as co seeks capital raise
Israeli cybersecurity solutions provider
private offering of $1.5 bln 0% 5-yr convertible bonds
Co intends to use portion of net proceeds
to pay the cost of capped call transactions, and repurchase its shares in an amount up to $225 mln
It plans to use remainder of proceeds for general purposes, including additional share repurchases, potential M&A, business and new products development
CHKP has about $20 bln market cap, per LSEG data
CHKP stock on Tues edged up 0.1% to close at $187.25, up 0.3% YTD
15 of 38 analysts rate the stock “strong buy” or “buy”, 23 have “hold” ratings; median PT is $225 - LSEG (Lance Tupper is a Reuters market analyst. The views expressed are his own)
