Data Storage Corp Stock Skyrockets 46% After Hours Amid CloudFirst Deal Buzz

Data Storage Corp DTST stock experienced a surge of 46.45% in after-hours trading on Tuesday. The company’s stock price soared to $4.95.

What Happened: The surge in the stock price came after the company announced plans to sell its subsidiary, CloudFirst, and initiate a share buyback. The stock value of cloud and business continuity solutions provider jumped from $3.38 to $4.95 in after-hours trading, representing a 46.45% increase.

According to Chuck Piluso, CEO of Data Storage Corporation, "This agreement highlights the long-term value CloudFirst has created and reflects confidence in the future. While the transaction remains subject to shareholder approval, operations at CloudFirst remain unchanged, with no changes to structure or leadership."

Why It Matters: The decision to sell CloudFirst was announced earlier on Tuesday. The company also revealed plans to use the proceeds from the sale, along with its existing cash, to repurchase up to 85% of its outstanding shares. The remaining funds will be used for strategic acquisitions in high-growth sectors.

This move comes after the company’s first-quarter 2025 earnings report, which showed a significant miss on both the earning per share and sales estimates. The company’s stock price had been on a downward trend since the earnings report. The decision to sell CloudFirst and initiate a share buyback seems to have been well received by investors, leading to the significant after-hours surge in stock price.

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Price Action: Data Storage stock surged 46.45% after hours to $4.95 on July 15 during the late trading session.

Benzinga’s Edge Stock Rankings indicate, DTST stocks have negative trends across all time frames. Find out how rivals in the multi-cloud information technology solutions industry rank.