Applied Signal Technology, Inc. (NASDAQ: APSG) is seeing a price jump and a volume surge after Reuters reported that the company is out shopping itself to defense contractors. The provider of intelligence, surveillance, and reconnaissance solutions has long been a winner in the world of intelligence. While shares have more than doubled since the lows of 2008, the stock has generally been range-bound for years despite a new 52-week high being seen today.
Shares are up 6.4% at $29.53 on 379,000 shares as of 10:12 AM EST. Average volume is only about 92,000 shares and the market cap is just shy of $400 million.
When the biometric and surveillance companies were rapidly consolidating in the post-terrorism world, Applied Signal is a name that often came up as a possible buyout target in many screens. Whether it happens now is up to the buyers and to the company itself.
UPDATE 4:24 PM EST: Applied Signal confirmed that it is exploring strategic alternatives. Shares closed up 12.98% at $31.33 and shares are up in after-hours by 5.75% at $33.13. Today’s new 52-week high was $31.65 during trading hours.
JON C. OGG