Avid watchers of FireEye Inc (NASDAQ:FEYE) must be wondering as to why the stock nosedived and shed nearly half of its value during the last six months. The answer to the lingering question comes from FBN’s Charles Payne, who tried to explain the reason behind the drop, on a show featured on FoxBusiness.
Insiders To Be Blamed
Payne said that “FireEye Inc (NASDAQ:FEYE) was a rocket ship and it got to head for itself.” Payne said that FireEye is a provider of virtual machine based security platform that climbed to its glory during the Target Corporation (NYSE:TGT)’s data breach. Payne recalled that during December to January, a lot of computer securities firm started gaining momentum after Target lost millions of its customer’s data from its store.
“That set all of these stocks, everybody involved in this computer securities, set them to the moon. And when they went to the moon, the insiders, these are the CEO’s and the big time guys, who run the company, they sold millions of dollars worth of Stock.”
The action pushed fears among investors, who went on a selling spree, eventually leading to the stock drop.
Future Looks Bright
Overall, Payne still believes that FireEye Inc (NASDAQ:FEYE) is an amazing company and expects its stock to go higher. However, he does not guarantee whether the stock will see a further downside or not. Payne said that it’s tough to find a bottom during a pullback. Other than this, Payne said that he likes the kind of acquisitions that FireEye Inc (NASDAQ:FEYE) makes, as he said
“They really are the best company in what they do.”
On a final note, Payne said that he hopes that eventually the company will live up to its goals. He stated that it is a wrong perception that once the stocks get hammered then they are unlikely to come back.
Adam Usdan’s hedge fund Trellus Management Company has 19.33% of its equity portfolio invested in FireEye Inc (NASDAQ:FEYE) that is comprised of 440,488 shares. Andor Capital Management, led by Daniel Benton raised its stake by 80% in FireEye during the first quarter to 450,000 shares.