Lifelock (LOCK) Stock: Spokeswoman Confirms Talks Of Being Taken Private

Lifelock Inc (NYSE: LOCK)

Lifelock was off to a generally normal start in the market today. Sure, the stock had some gains, but what we saw early on is nothing compared to what we’re seeing right now. At the moment, the stock is skyrocketing, and for good reason. There are rumors circling the stock that are exciting investors, and a spokeswoman from the company has confirmed those rumors. Today, we’ll talk about the rumors, what we’re seeing from the stock, and what we should be watching for with regard to LOCK ahead.

The Rumor That’s Sending LOCK Upward

If you search the news feeds, you’ll see that there have been no press releases, or any other bits of fundamental news from the company that could cause such an upward run. However, there is one thing that seems to be shaking up the stock. All over social media, for some time now, there have been claims that Lifelock is considering taking itself private.

The rumors all started with a Bloomberg report. In the report, Bloomberg said that the company has hired advisors to explore the possibility of taking itself private. If this were to happen, the outlet suggested that the price tag on the deal would be $2 billion. Of course, this would return tremendous value to investors as it represents a strong premium on the current market cap.

As the rumor started to surface, LOCK took notice, and minutes ago, we heard comments from a company spokeswoman. When asked about the rumor that the company was being taken private, the spokeswoman said, “We don’t comment on rumors but if I blink twice, that means it’s legit!” After the statement, she made two, obvious blinks! So, without actually confirming the rumors, the spokeswoman has confirmed the rumors. Gotta love the way the market works.

How The Stock Is Reacting To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released surrounding a publicly traded company, we can expect to see gains in the value of the stock associated with the company as a result. Adversely, negative news will generally lead to declines. In this particular case, the news was overwhelmingly positive. As a result, we’re seeing incredibly strong gains in the value of the stock. Currently (12:26), LOCK is trading at $19.10 per share after a gain of $1.46 per share or 8.28% thus far today.

What We Should Be Watching For Ahead

Moving forward, things are looking great for Lifelock. The company has built an incredible name for itself, and at this point, may be going private. If the company does go private, the return of value to shareholders is likely to be tremendous. As a result, I’m expecting to see gains ahead.

What Do You Think?

Where do you think LOCK is headed moving forward? Join the discussion in the comments below!