NEW YORK (TheStreet) -- Shares of QLogic Corp. (QLGC) are spiking by 7.82% to $13.79 on heavy trading volume late Friday afternoon as the company hired Qatalyst Partners to explore strategic alternatives, such as a possible sale, sources told Bloomberg.
There is no guarantee that a deal will happen, the sources added.
In August, the company named Jean Hu as its interim CEO after Prasad Rampalli suddenly left to pursue other opportunities, Bloomberg noted.
Hu has been QLogic's CFO since 2011 and previously was the CFO of Contexant Systems.
Contexant hired Qatalyst when it sold itself to Golden Gate Capital the same year, according to Bloomberg.
Aliso Viejo, CA-based QLogic designs and supplies server and storage networking connectivity products that provide and manage computer data communication.
About 1.34 million of the company's shares were traded so far today vs. its average volume of 531,355 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on QLogic stock.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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.
You can view the full analysis from the report here: QLGC