Why Sapiens International Corporation N.V. Gained 19.7% in September

Sapiens International Corporation N.V.(NASDAQ: SPNS) saw its share price climb 19.7% in September, according to data from S&P Global Market Intelligence, with the movement stemming from the company receiving favorable ratings coverage and securing additional funding through a new bond offering.

Sapiens International is a small-cap insurance software company valued at roughly $670 million, and, as a result of its size, shares tend to fluctuate a good deal in relation to news stories.

Cowen and Company initiated coverage on the stock last month and gave the stock an "outperform" rating in a note published September 6. Sapiens also announced that it had issued a new series of debenture bonds for estimated aggregate proceeds of $12.9 million. The company indicated that it would use the offering to repay a bank loan, improve its balance sheet, and pursue potential mergers-and-acquisitions opportunities. Management had previously stated that the move would allow it to replace existing bank debt with a more favorable long-term interest rate.

Source: Fool.com