Why Splunk Is Trading Higher Today

Splunk Inc SPLK is trading higher Tuesday morning after the company announced a $1 billion investment from Silver Lake. 

Splunk plans to use the proceeds to fund growth initiatives and manage its capital structure, including its newly announced share repurchase program.

“We’ve significantly evolved our business since we began our transformation to become a cloud-first company over two years ago, and today’s announcement reaffirms the strength of our business fundamentals, cloud strategy and high-growth trajectory,” said Doug Merritt, president and CEO of Splunk.

Splunk also announced its new Splunk Security Cloud today, a security operations platform delivering solutions to help customers get maximum value from their data. 

Price Action: Splunk has traded as high as $225.89 and as low as $110.28 over a 52-week period. 

At last check Tuesday, the stock was up 10% at $138.41.