NEW YORK (TheStreet) -- Shares of iPass (IPAS) surged 30.7% to $1.49 in afternoon trading Tuesday one day after the company announced it had begun to explore strategic alternatives that could increase stockholder value.
iPass president and CEO Evan Kaplan said in a statement the performance of the company's Open Mobile business and the sale of its Unity Managed Network Services led to the decision to explore the strategic alternatives. The company said it does not plan to comment further on the process until the board of directors makes a transaction or concludes the exploration.
iPass provides Wi-Fi connectivity services to enterprises, telecommunications carriers, service providers and device manufacturers.
More than 1.4 million shares had changed hands as of 12:35 p.m., compared to the average volume of 204,470.
Separately, TheStreet Ratings team rates IPASS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate IPASS INC (IPAS) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."