On Tuesday, Everbridge's impressive line-up of underwriters will be allowed to release detailed reports on the company, and the market will be listening.
Because Everbridge's IPO performance has been very strong, these reports will likely drive the stock higher when they are released. Investors can profit by establishing a position in Everbridge this week and selling shares after the reports are released.
Everbridge priced at $12, at the mid-point of its expected price range of $11 to $13, and it opened at $15.25 on its first day of trading. It reached a high of $17.55 on Sept. 21.
Average daily trading volume has been solid, and there is plenty of liquidity.
One of the most important factors in assessing the strength of an IPO is the quality of the underwriters. Everbridge's include Bank of America, Canaccord Genuity, Credit Suisse, Merrill Lynch, Pacific Crest, Raymond James, Stifel and William Blair.
Everbridge is a software company that offers communication and safety applications, designed to perform during critical events. The company's platform allows clients to deliver critical messages to large groups of people quickly, which allows communication during time-sensitive events such as severe weather conditions or terrorist attacks.
The company's platform allows users to send these messages in real time, using more than 100 different types of communication devices.
The platform can be used in more than 200 countries and can reach recipients using 15 languages. Last year alone, Everbridge handled 1.1 billion communications.
Everbridge's applications include community engagement, incident management, information technology alerting and secure messaging, the Internet of Things, mass notification, and safety connection. Key sectors served by Everbridge include energy, entertainment and media, the financial services industry, health care, and professional services.
In the company's filing with the Securities and Exchange Commission, Everbridge also noted that the market for critical communications solutions is expected to grow to $31.9 billion in 2020 from $15.6 billion last year.
The bottom line is that to benefit from a pop in share price after the release of underwriter reports, establish a long position before the release of underwriter reports, and sell shares following their release.
This article is commentary by an independent contributor. At the time of publication, the author owned EVBG.