Bullish indicating open at $55-$60, IPO prices at $37
CHICAGO—Matthew Campobasso, the General Counsel of Enfusion , Inc. (NYSE:ENFN), recently sold 1,081 shares of Class A common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $11.481, amounting to a total transaction value of $12,410. The transaction comes as Enfusion, currently valued at $1.47 billion, trades near its 52-week high of $11.80, having gained over 41% in the past six months.
The sale, which took place on March 3, was conducted to cover tax withholding obligations related to the issuance of the shares, as indicated in the filing. This transaction was not a discretionary trade by Campobasso. Following the sale, he retains ownership of 72,641 shares in the company. According to InvestingPro analysis, Enfusion maintains strong financial health with a current ratio of 3.42, indicating robust liquidity position.
Enfusion, Inc., headquartered in Chicago, is a provider of prepackaged software services. The company has demonstrated solid growth with revenue increasing 15.51% over the last twelve months. InvestingPro subscribers can access 12 additional key insights and a comprehensive analysis of Enfusion’s financial health, which is currently rated as GOOD.
In other recent news, Enfusion Inc has announced its fourth-quarter earnings for 2024, coinciding with its acquisition agreement by Clearwater Analytics. The acquisition price is set at $11.25 per share, which is a 13% premium over the stock’s previous closing price. Stifel analysts have responded by maintaining a Hold rating with a price target of $11.25, aligning with the acquisition terms. Meanwhile, Morgan Stanley (NYSE:MS) has downgraded Enfusion’s stock from Overweight to Equal-weight, also setting the price target at $11.25 to match the acquisition offer.
The acquisition is viewed as a means to expedite value realization for Enfusion’s shareholders, addressing past concerns like limited public float and dependency on the startup hedge fund sector. Analysts at Morgan Stanley noted that Enfusion’s performance has been at the lower end of projections, which influenced their downgrade decision. Stifel’s analysis suggests that the acquisition is a favorable outcome for Enfusion, with the offered price deemed fair for shareholders.
The transaction is expected to stabilize Enfusion’s stock price around the acquisition value. The agreed price reflects a valuation of approximately 6.4 times the projected FY25 enterprise value/revenue, which analysts consider reasonable given the company’s financial outlook. As the acquisition process continues, investors are closely monitoring the developments, with expectations of the stock aligning with the agreed price.
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