Intrusion recovers after shock CEO exitCybersecurity firm Intrusion Inc saw its stock lift 52% on Tuesday to become TradingView’s top gainer for the day, a strong recovery after losing over 60% in the last week due to a CEO shock exit and a lackluster Q2 forecast.
Shares of Intrusion Inc, which provides leading cyberattack prevention solutions, have been dwindling for a while now, losing the momentum it had gained over the past year on the back of a new CEO (now departed) and a new cyber-protection product. The stock soared when Jack Blount first took over, but things started to go awry in April when a report emerged accusing Intrusion of a short-selling scheme. Since then, prices are down over 67% for July to date, shot down further by disappointing earnings.
Things went from bad to worse for the cyber-tech firm last week, when Blount left the company in a shock exit after less than a year at the helm, sending the stock down to a 52-week low. Adding insult to injury, its Q2 forecast predicted earnings up to $2 million, less than half of the $4.3 million that analysts were expecting. The company believes it’ll need extra capital in order to reach profitability, so it has brought in an investment banking firm to look at funding options. HC Wainwright & Co. has slashed its price target to $5 from $25 a share, which doesn’t inspire confidence.
Prices lost 61% over the course of last week alone, but pumped up on Tuesday in heavier than usual trading, popping over 116% before closing the day up 52%. The stock lost 14% the following day, but remains buoyant.
Tough times for Intrusion Inc as CEO bailsShares of Intrusion Inc, which provides AI cybersecurity solutions, see their biggest single day drop ever on Tuesday to spend the day in TradingView’s top loser list, dropping 50% on the back of poorer than expected preliminary Q2 results and a CEO shock exit.
Intrusion Inc had a tumultuous Tuesday, reaching its lowest price ever at $5.09 after disappointing preliminary sales results. The AI-focused cyber security company completed its uplisting in October 2020, when it priced its shares at $8 each. Prices steadily increased following its SPAC on October 8, but have been plummeting since an investigation into possible securities fraud on behalf of its investors began in April. Things only continued to deteriorate after its Q1 earnings missed revenue expectations in early May and prices sank 28%.
Tuesday extended those losses by just under 50% after the company forecast its second quarter revenue to come in at $1.9 billion - significantly lower than the $4.3 million expected. Not only that, but CEO Jack B. Blount has just jumped ship, departing the company effective immediately. The former CEO isn’t the only one that’s worried, and Intrusion has also hired an investment bank to look at various funding options and strategic partner considerations. It’s not looking great, tbh.