McAfee Stock Surges After Announcing Billion-Dollar Sale

Over the last three months, the security has added roughly 55%

Digital Content Manager
Mar 8, 2021 at 11:05 AM
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The shares of cybersecurity concern McAfee Corp (NASDAQ:MCFE) are surging today, up 13.5% at $24.06 at last check, and earlier hitting a record high of $24.60. The upbeat price action came after McAfee announced the $4 billion sale of its enterprise business -- which recorded $1.3 billion in net revenue in 2020 -- to a consortium led by Symphony Technology Group. The all-cash transaction is expected to close by the end of this year.

Today's pop has helped McAfee stock overcome resistance at the $22 level, which has acted as pressure since mid-January. The 40-day moving average has also played a major role in the stock's climb, containing a late-February pullback. In the past three months, MCFE has added approximately 60%. 

Analysts are optimistic towards the equity, with five of the nine in coverage carrying a "buy" or better rating, while the remaining four call it a tepid "hold." Meanwhile, the stock's 12-month consensus target price of $23.69 is right in line with current levels. 

The security's usually quiet options pits are brimming with activity today. Amid low absolute volume, 726 calls and 177 puts have crossed the tape so far -- six times the intraday average. The most popular is the monthly September 35 call, followed by the March 22.50 call.

Now could be a good opportunity to weigh in on McAfee stock's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 49% sits in the lowest percentile of its annual range. In other words, the stock currently sports attractively priced premiums.

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