What happened
Shares of Bottomline Technologies (NASDAQ: EPAY) popped 16% this week, according to data from S&P Global Market Intelligence, after the tech company announced it was appointing three new members to its board of directors and after an analyst raised its price target for the company's stock.
So what
On Wednesday, Bottomline announced that Philip Hilal, Larry Klane, and Michael Curran would be added to the company's board of directors starting Nov. 8 and that the board would set up a new strategy committee.
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Typically, investors don't push a company's share price higher for something as simple as board member appointments, but investors may have focused on the fact that Bottomline will also have a new strategy committee set up by the board.
The new committee will make recommendations for the company's "market position and strategy, acceleration of subscription revenue growth and opportunities to create additional shareholder value."
Bottomline investors pushed the company's share price up about 10% on the news.
The company's share price popped again on Thursday when a Raymond James analyst raised his price target for the stock from $44 to $54, representing nearly a 22% premium compared to the company's share price at the time.
Now what
Even with the company's huge share price gains this week, Bottomline Technologies' stock is up just 11.5% over the past 12 months.
Investors should certainly be pleased with this week's news, but they should also be cautious about making long-term investment decisions solely based on it. Board appointments and even a price target raise aren't exactly the kind of information to build an investment thesis around.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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