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Why Symantec Corporation Stock Popped Today

By Steve Symington - Updated May 14, 2018 at 1:23PM

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The cybersecurity leader partially bounced back after last week's plunge of more than 30%. Here's what investors need to know.

What happened

Shares of Symantec Corporation (NLOK 1.20%) were up 9.4% as of 12:15 p.m. EDT Monday, rebounding after the stock's more than 30% plunge late last week.

More specifically on the latter, Symantec plummeted on Friday after the cybersecurity specialist announced an internal audit that may lead to financial restatements.

Metal padlock sitting on top of a circuit board. Cybersecurity concept

IMAGE SOURCE: GETTY IMAGES.

So what

To be clear, the weekend brought no new details surrounding Symantec's internal investigation, which it says it commenced in response to "concerns raised by a former employee." Symantec also revealed that it has "retained independent council and other advisors to assist in the investigation," and has promised to keep the Securities and Exchange Commission in the loop with any further developments as it proceeds.

Now what

That said, this morning Symantec did schedule a conference call for later this afternoon to provide more information to investors, so you can be sure the market will be watching closely to see what the company has to say.

Note also that in its related SEC filing last week, Symantec suggested it's "unlikely" the investigation will be finished in time for it to file its annual report in a timely manner, so expect the company to file an extension to that end in the coming weeks.

In the meantime, it's no surprise to see Symantec stock recouping some of its recent drop given the severity of that decline. But I'm personally content watching from the sidelines until we learn more about the circumstances leading up to and surrounding the audit.

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