Pivotal Could Shift Lower When Lockup Expires -

Pivotal Could Shift Lower When Lockup Expires

Oct 08, 2018Jeremy ParkinsonFinance0

The 180-day lockup period for Pivotal Software Inc. (PVTL) ends on October 17, 2018. This date marks the point when the company’s pre-IPO shareholders and insiders can sell large blocks of currently-restricted stock for the first time. More than 37 million shares are currently restricted, and any significant sales could flood the secondary market for PVTL and cause a sharp, short-term downturn in share price.

Trading in Pivotal Software has been volatile during the last six months. The stock was priced at $15 and closed on the first day of trading at $15.73. PVTL has a return from IPO of 30%.

Business Overview: Provider Of Cloud-Native App Platform

Pivotal Software offers its integrated solution through a combination of its cloud-native application platform and various services within the U.S. The company calls their proprietary platform Pivotal Cloud Foundry (PCF), and the company markets it as having the capability to streamline and accelerate software development by cutting through the complex methods necessary to build and deploy applications. The company’s strategic services enable this accelerated process for clients.

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The Pivotal Cloud Foundry is currently in use in a wide array of industries including government, consumer, communications, technology and media, healthcare and insurance, financial services, industrial and business services, and automotive and transportation.

Pivotal Software markets its products and services through its own sales force and outside partners. In addition, Pivotal Software maintains go-to-market and commercial relationships with VMware (NYSE:VMW) and Dell Technologies (NYSE:DVMT). The company also works closely with Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG) (Nasdaq: GOOGL) to ensure adequate cloud infrastructure to meet the needs of its clients.

The company serves a variety of clients including Merrill Corporation, CoreLogic, Country Financial, Orange, Dish, Bloomberg, Comcast, The Home Depot, Humana, and the U.S. Internal Revenue Service, Sundance, Liberty Mutual, and Ford Motor.