Update (4:53 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- Allot Communications Ltd. (ALLT) rose the most it had in three months on Tuesday after the U.S. Court of Appeals ruled earlier in the day that the Federal Communications Commission's net neutrality rules had no basis within federal law.
The stock rose 9.51% to $16.35, up $1.42 from its previous close of $14.93, at the close of the trading day on Tuesday. Allot had a volume of 1,805,955, more than six times greater than its average of 300,781. It hit a high of $16.60 and a low of $14.78 for the day. The $16.60 figure also represents a one-year high.
Allot, an Israeli company that creates technology that tracks wireless traffic and provides IP service optimization solutions, had dropped 15% in the last year but soared more than 10% during the trading day, the biggest increase since Oct. 2, 2013.
The court ruled against the net neutrality rules, which would mandate that companies provide Internet service via wires in order to treat all traffic equally. The U.S. accounted for 24% of Allot's revenue in 2012, so the stock jumped after the court's ruling allowed for Allot's potential benefit in the country.
TheStreet Ratings team rates Allot Communications as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLOT COMMUNICATIONS LTD (ALLT) a HOLD. The primary factors that have impacted our 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 largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."