Boston, MA 03/07/2014 (wallstreetpr) – Cyan Inc (NYSE:CYNI) did not end up with the kind of results that most investors were hoping for in the most recent quarter. In fact, the move by the company to revise down its revenue estimates ended up putting a sour taste into the mouth of investors.
When stocks don’t perform to expectations, investors are more likely to head for the exit, unless the results are backed by solid reasons or much better outlook issued for the next quarter. Cyan Inc (NYSE:CYNI) did try to offer some explanation as to why it was impossible to live up to its earlier promise. The company had promised that it would turn revenue in the range of $30 – $33 million in the fourth quarter. Instead, revenue came in at $20.89 million.
Important customer cut spending
What did Cyan Inc (NYSE:CYNI) say about its weaker revenue figure? The company said that one of its largest customers cut its spending by more than 88 percent. But even that good reason was not enough to sooth investors who immediately started dumping the stock. But something has just happened before the stock could plunge further.
It has been revealed in a regulatory filing that the company’s SVP recently acquired a significant amount of the stock. In a Securities Exchange Filing (SEC), Cyan Inc (NYSE:CYNI) revealed that James A. Hamilton, senior vice president and head of global sales, purchased 100,000 shares at the average price of $3.35 a share. When insiders put their money to buy their stock, it is always interpreted to mean good things ahead. In any case, as an insider, he should know better about the company’s health.
CYNI in last trading
Thus, on that good news, investors helped take the stock higher, gaining almost 20 percent to $3.98 in the last regular session. It was a trading day characterized with high volume trading and shares dancing between $3.40 and $4.
Cyan Inc (NYSE:CYNI) is involved in the provision of networking services. The stock has a one-year stock price high of $15.05 and $184.80 million in market price.
