Yext stock rises after CEO Walrath offers $9 per share buyout proposal

Published 18/08/2025, 16:34
Yext stock rises after CEO Walrath offers $9 per share buyout proposal

Investing.com - Yext Inc . (NYSE:YEXT) stock rose after CEO Michael Walrath submitted an unsolicited proposal to acquire all outstanding shares of the company for $9 per share. The stock, which has delivered a remarkable 63.1% return over the past year, currently trades at $9.05, near its 52-week high of $9.15. According to InvestingPro analysis, the company’s market capitalization stands at $1.1 billion.

The company has formed a special committee to evaluate the proposal and consider any superior offers that might be received, according to Needham analyst Ryan MacDonald, who reiterated a Buy rating and $10.00 price target on the stock.

Yext announced that its second-quarter results would meet or exceed previously provided guidance ranges, suggesting the buyout offer is not related to performance issues. However, the company has withdrawn its fiscal year 2026 guidance.

Needham views a financial sponsor as a more likely financier for the deal than a strategic buyer, noting that the guidance update indicates the business remains on track.

The analyst cited growing momentum of Yext’s new Scout offering and the potential for additional offers as reasons for maintaining the firm’s valuation perspective on the company.

In other recent news, Yext Inc. reported its fiscal Q1 2026 earnings, meeting the earnings per share forecast of $0.12 and surpassing revenue expectations with $109.5 million compared to the projected $107.6 million. In a notable development, CEO and Chairman Michael Walrath proposed acquiring all outstanding shares of Yext not already owned by him for $9.00 per share, with backing from well-capitalized financing sources. Additionally, during Yext’s annual stockholders’ meeting, shareholders elected three Class II directors, including Walrath, to serve a three-year term. Analyst firm DA Davidson raised Yext’s stock price target to $8.25 from $7.50, maintaining a Neutral rating after the company’s solid financial performance. Meanwhile, B. Riley upgraded Yext stock from Neutral to Buy, increasing the price target to $10.00, citing improved key performance indicators and management’s strong track record. These recent developments indicate a period of significant activity and investor interest in Yext.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.