Shares of Radware Ltd. (RDWR), an Israeli-based co. that provides application delivery and network security solutions, skyrocketed on Wednesday on renewed speculation that the company remains an attractive takeover target.
About two weeks ago the Israeli newspaper “Globes.com” was the source of a rumor that IBM (IBM) and Hewlett-Packard (HPQ) are in talks with Radware on a possible acquisition. So far however, no deal has been announced.
From a technical perspective RDWR shares — whose 1-year forward P/E , based on FY11 EPS estimates, currently stands at 22.6x — put in a nice base at the $32 level the past two trading days. This dynamic has allowed the stock to test the $35.50 area. The ticker will likely see strong resistance at $36.
RDWR is trading above the 50 and 200 day moving averages of $26.52 ; $20.78, respectively. Both parameters are now acting as support levels.
Shares of Radware are up $2.76 on 1.9 mln volume, + 5.58%, to $34.94 at 3:54pm ET in Nasdaq composite trading. RDWR shares have traded between $10.77 and $40.17 over the last 52 weeks.