NEW YORK (TheStreet) -- Shares of Infoblox (BLOX) were advancing 7.05% to $21.56 on heavy trading volume mid-afternoon Wednesday as the Santa Clara, CA-based network infrastructure enterprise and service provider is reportedly in talks about selling itself.
Infoblox has been approached by several private equity firms concerning a potential acquisition, including the buyout firm Thoma Bravo, Reuters noted.
The company initiated the process in response to pressure from activist fund Starboard Value. Infoblox hired Morgan Stanley in May to help defend itself against the company, which holds a 7.1% stake.
Additionally, Infoblox is expected to report 2016 fourth quarter results after today's market close.
Wall Street is looking for the company to report earnings of 6 cents per share on revenues of $84.51 million.
Infoblox earned 12 cents per share and $87 million in revenue during the same quarter last year.
The company's revenues have fallen below estimates recently as a result of weaker spending environments and a more rapid tapering down of its product upgrade cycle, Infoblox said in its fiscal 2016 third quarter results.
About 1.65 million of the company's shares have changed hands so far today vs. its average volume of 499,640 shares per day.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Infoblox as a Hold with a ratings score of C-. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, the team also finds weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: