Market News

SUMO Soars on Potential Buyout News

A major move in data analytics is on hand, as Sumo Logic (NASDAQ:SUMO) is drawing increasing interest from private equity firms. Indeed, Sumo Logic closed up over 28% in Monday’s trading as a result. Several private equity firms—Thoma Bravo, Francisco Partners, and Vista Equity Partners—all approached the company about a potential acquisition.

It’s unclear if Sumo is even interested in a sale. There’s been little word from CEO Ramin Sayar on the subject. This isn’t the first such move Thoma Bravo has made lately; Thoma’s been on what some call a “buying spree.” It bought Magnet Forensics back on Friday for C$1.8 billion in cash. Thoma Bravo also picked up SailPoint, Anaplan, and Coupa Software.

Sumo Logic may have made itself an excellent target for such a move. The stock is down 40% just in the last year, and also appointed a board member—John Harkey—as part of an agreement with Scalar Gauge Fund. Sumo also landed both Visionary and Challenger ratings by recent Gartner Magic Quadrant studies. Its impressive third-quarter performance likely didn’t hurt matters either.

Overall, consensus figures call Sumo Logic stock a Moderate Buy. Further, with an average price target of $13.33, it also offers investors 34.99% upside potential.

Join our Webinar to learn how TipRanks promotes Wall Street transparency

Disclosure

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More