NEW YORK (TheStreet) -- Shutterfly  (SFLY) - Get Report  stock is up 7.75% to $44.09 on heavy trading volume Tuesday after the company disclosed that a private equity firm was interested in buying the company.

The Redwood City, CA-based digital photo company received a letter from an unnamed private equity firm that expressed interest in buying the company, Shutterfly said in an SEC filing today.

That letter has been circulated "to certain participants in the investment community" without Shutterfly's permission, the company said. 

"The board exercises its fiduciary duties in giving due consideration to such indications of interest, but is not engaged in negotiations regarding the sale of the company," Shutterfly said in the filing. "The company's highest priorities at this time are delivering its 2016 results and hiring a new CEO."

So far today, 1.18 million shares of Shutterfly have traded, versus the company's 30-day average of 579,000 shares. 

Separately, 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.

TST Recommends

TheStreet Ratings rates this stock as a "hold" with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

You can view the full analysis from the report here: SFLY

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