In a series of events affecting the financial sector on Monday, Vista Equity Partners announced its acquisition of EngageSmart (ESMT) in a deal valued at $4 billion. The news came amidst various shifts within the financial market.
Bank of Hawaii (BOH) reported lower third-quarter results but saw an increase in deposits and a 4.4% rise in share value. In contrast, Great Ajax (NYSE:AJX) and Ellington Financial (NYSE:EFC) ended their merger agreement, which led to a significant 31% dip in AJX shares.
Wells Fargo (NYSE: WFC) experienced a 2.1% drop in its shares after it was removed from underwriting a $310 million bond deal for Cypress-Fairbanks Independent School District due to climate change policies.
On the same day, there was a general decline in financial stocks including NYSE Financial Index (down by 0.4%), Financial Select Sector SPDR Fund (NYSEARCA: XLF, down by 0.6%), and Real Estate Select Sector SPDR Fund (NYSEARCA: XLRE, down by 0.8%). However, the Philadelphia Housing Index saw a rise of 0.6%.
In cryptocurrency, Bitcoin (BTC-USD) surged by 4.2% to $31,272, while yields for 10-year US Treasuries fell to 4.852%.
Lastly, the Chicago Federal Reserve Bank's National Activity Index for September outperformed expectations. Contrary to the Bloomberg survey's predicted -0.14, the index rose to 0.02 from August's revised -0.22 figure.
InvestingPro provides real-time metrics and tips for companies like EngageSmart (ESNT). The company has a market cap of 5020M USD and a P/E ratio of 7.5, as reported by InvestingPro. The company's revenue for LTM2023.Q2 was 1008.18M USD and it had a gross profit of 939.31M USD, with a gross profit margin of 93.17%.
InvestingPro Tips highlights that EngageSmart yields a high return on invested capital and has strong earnings that should allow management to continue dividend payments. The company has raised its dividend for 4 consecutive years and operates with a high return on assets. It is also trading at a low earnings multiple. These tips, along with dozens of others, are available through InvestingPro's premium service.
The company's stock generally trades with low price volatility, and its net income is expected to drop this year. However, stockholders receive high returns on book equity and the company has maintained dividend payments for 5 consecutive years. Analysts predict the company will be profitable this year.
InvestingPro data also shows that the company's return on assets for LTM2023.Q2 was 11.62% and its dividend yield was 2.13%. The company's 1-year price total return was 30.48%. The fair value of the company, according to InvestingPro, is 54.29 USD.
These metrics and tips provide valuable insights into the company's performance and can be useful for investors looking to make informed decisions.
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