Why Is Cornerstone OnDemand Stock Trading Higher Today?

Needham analyst Scott Berg downgraded Cornerstone OnDemand Inc CSOD to Hold from Buy after the company agreed to be acquired by Clearlake Capital.
The acquisition price may not be adequate at 6x revenues and 20x free cash flows. However, the thorough sale process negates the possibilities of a superior bid, Berg added.
Cornerstone agreed to be acquired by Clearlake for $57.50 per share in cash, signifying an enterprise valuation of $5.2 billion.
The purchase price implies a 31% premium to Jun. 1 closing price, the last full trading day before Clearlake filing a Schedule 13D regarding Cornerstone's strategic review process.
The talent management firm reported Q2 revenue of $214.3 million, beating the analyst consensus of $209.5 million. Subscription revenue growth of 16.7% drove a 16.3% revenue growth year-on-year.
EPS of $0.73 beat the analyst consensus of $0.52.
Price action: CSOD shares traded higher by 13.2% at $56.51 on the last check Friday.