Shares of VirnetX Holding (VHC) surged as much as 71% in Friday’s regular trade, reaching a 30-month high. The upside came after the cybersecurity provider announced it had secured a General Services Administration (GSA) Multiple Award Schedule contract.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The designation positions VirnetX as an approved technology provider for federal, state, and local government agencies. Also, it opens new opportunities for the company in cybersecurity, secure communications, and digital engineering.
Under the contract, VirnetX will offer its key platforms, VirnetX Matrix and War Room, designed for real-time, secure communications across complex, multi-domain environments. These tools are built to support mission-critical collaboration while maintaining strict security standards.
Government Approval Sparks Investor Optimism
Importantly, the GSA contract is a major milestone for VirnetX. Being listed on the GSA schedule means the company can now more easily sell its solutions to government entities, which could often be a lengthy and competitive process. This approval also signals trust in VirnetX’s capabilities.
With cybersecurity spending on the rise and public sector agencies seeking robust digital infrastructure, VirnetX’s GSA approval could mark a turning point for the company.
Is VHC Stock a Good Buy?
Overall, on the one-day time frame, VHC stock is a Strong Buy, according to TipRanks’ easy-to-read technical summary signals. This is based on 15 Bullish, five Neutral, and two Bearish signals.
