NICE Systems, the telephone voice recording, data security, and surveillance firm, has had a turbulent run at the Stock Market.
The 21 percent rally, followed by the 17 percent dive since mid-April, after Barak Eilam took the helm as the chief executive officer in February had been proof enough of volatility for investors, precipitating the selloff from mid-April to mid-May – one of their worst shows at the stock market in the last two years.
Daniel Ives, an analyst at FBR Capital Markets, enunciates to the MalayMailOnline through phone, “It’s been some choppy execution over the last few quarters.”
However, Nice’s gain since Aug. 19 beat the 4.6 percent return on the Bloomberg Israel-US Equity Index and the company’s U.S.-listed shares rose 1.1 percent last week to $40.85 compared with a 0.5 percent retreat in the index, according to MalayMailOnline.
Soros Fund Management, led by Billionaire George Soros, increased its stake to 2.8 percent in Q2, to be Nice’s third-largest shareholder.
“Investors are starting to show some optimism that the new CEO could turn this around and help them restore some of the magic and go after this big data opportunity,” Ives added.
The stocks have been climbing, – a 7.4 percent over the past month – owing to the belief that under Eilam’s guidance the company might profit riding on the growing demand for data analytics.
Greg McDowell, an analyst with JMP Securities LLC in San Francisco, tells MalayMailOnline that the algorithms used by Nice to analyse unstructured data hasn’t fully been tapped to cater to the demand for analytics. Eilam, is beleived to be capable of changing this trend with his experience in Nice’s U.S. operations where he set up its data analytics group.
“That whole real-time analytics angle, selling that to their big install base, that’s a big component of their ability to accelerate growth,” McDowell told MalayMailOnline by phone. “Investors also see that there’s room for operations improvements in the business, and he’s the right guy to make these operational improvements.”
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(Image Credit: Iman Mosaad)