Antivirus company Avast was the star performer on the London Stock Exchange (LSE) last week. The company’s stock soared by double digits to top the Saxo Markets Weekly LSE Winners list. Here’s why Avast shares drew a lot of interest from investors last week.
What is Avast?
Avast is one of the largest cybersecurity companies in the world. The company, which was founded and is headquartered in Prague, in the Czech Republic, offers products in two main segments:
- Consumer products
- Products for small and medium businesses
Avast currently has more than 435 million users online, according to the company’s website. Under the Avast and AVG brands, the company says it offers products that “protect people from threats on the internet and the evolving IoT (Internet of Things) threat landscape.”
Avast has been trading on the LSE since 2018 and was promoted to the FTSE 100 last year.
What happened to the price of Avast shares?
The share price of Avast exploded last week, rising by 22.23%, according to data from Saxo Markets.
After opening the week trading at around 496p, the company’s share price rose dramatically during the course of the week, reaching as high as 611p on Friday 16 July. At the time of writing, the company’s shares are trading at around 579p.
Why did Avast shares go up?
The surge of Avast shares follows the company’s confirmation that it is in advanced talks to merge with US cybersecurity company NortonLifeLock.
However, Avast said that “There can be no certainty as to whether any transaction will take place.”
Under takeover rules, NortonLifeLock has to make a firm offer by 11 August. Nevertheless, the confirmation of talks between the two companies was enough to raise investor confidence and cause Avast’s share price to surge and become the biggest gainer on the LSE last week.
What other companies performed well?
Avast was not the only company to make notable gains on the LSE this week. The previous week’s best performers, GCP Student Living and Vectura Group also had a good week with their share prices rising 11.34% and 13.86% respectively. Other stocks with significant gains last week included:
- Reach Plc: 8.99%
- Daily Mail and General Trust: 6.59%
- Watches of Switzerland: 6.01%
- Liontrust Asset Management: 5.54%
- Dechra Pharmaceutical: 5.51%
- Impax Asset Management: 5.27%
- Bunzi: 5.23%
Can I buy shares in Avast?
You can buy shares in Avast using a normal share dealing account. If you don’t have one, we have reviewed some of the UK’s top providers of share dealing accounts to help you make the right choice.
However, if possible, consider investing via a stocks and shares ISA. This investment vehicle comes with a tax wrapper that protects your investment growth and income from tax.
If you are thinking of investing in Avast, ensure that you have done your homework, and seek professional advice if needed.
There is no telling what could happen to the company’s share price in the future. If the deal with NortonLifeLock is confirmed, Avast’s share price could gain even more value. But if a deal fails to materialise, the company’s share price could plunge just as dramatically as it exploded last week.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
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