Symantec Corporation (SYMC), currently valued at $16.36B, is close to announcing a split of its business into two entities, with one that sells security programs and another that does data storage, Bloomberg News reported on Wednesday, citing people with knowledge of the plans. An announcement may be a few weeks away, according to the report.
The news follows a growing trend in the last few weeks of tech companies spinning their assets into two, including EBay’s (EBAY) announcement last week that it plans to split from PayPal and to turn the payments unit into a secondary independent publicly traded company and Hewlett-Packard’s (HPQ) statement earlier this week that the company plans to split into two new public entities — Hewlett-Packard Enterprise and HP Inc.
On valuation measures, Symantec Corp has a median Wall Street price target of $25.00 with a high target of $30.00. Approximately 2M shares have already changed hands, compared to the stock’s average daily volume of 4,795,200.
In the past 52 weeks, shares of the Mountain View, California-based security solutions firm have traded between a low of $17.95 and a high of $25.60 with the 50-day MA and 200-day MA located at $24.09 and $22.43 levels, respectively. Additionally, shares of Symantec trade at a P/E ratio of 1.68 and have a Relative Strength Index (RSI) and MACD indicator of 46.32 and -0.37, respectively.
SYMC currently prints a one year loss of about 4.01% and a year-to-date return of around 0.39%. Ticker recently traded at $23.59, up 1.72 percent.
The chart below shows where the equity has traded over the last 52 weeks, with the 50-day and 200-day MAs included.
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