Top Gainers; 2U, Sun Country Airlines, & Patterson Companies
Byju’s to acquire 2U for around $1B
2U Inc (NASDAQ: TWOU) gained 24.8% after Indian online-education company Byju’s offered to acquire it in a cash deal valuing the Lanham, Maryland-based firm at over $1 billion. According to a person familiar with the matter, Byju’s submitted an offer of around $15 per share last week to 2U’s board of directors. The offer represents a premium of around 61% to the closing price of 2U stock on Tuesday at $9.2 per share. Byju’s is among the promising startups in the world, with backing from the Chan Zuckerberg Initiative and Tiger Global Management. Byju’s has been accelerating its global expansion, and in May, Bloomberg reported that the company was planning to bid for Chegg Inc or 2U.
Negotiations are still ongoing between 2U and Byju’s, but there are no guarantees that a deal will be reached. Currently, 2U is valued at $717 million, and it could be $1 billion, including other liabilities and debt. Byju’s has secured almost $2.4 billion in financing in readiness for the deal as it wants to enhance its growth and expansion globally.
Evercore ISI lowers price target on Sun Country
Sun Country Airlines Holdings Inc (NASDAQ: SNCY)jumped 11.08% after Evercore ISI lowered the stock’s price target to $30 from $45 per share. The research firm maintained a Buy rating on the shares. With plane tickets remaining high, the company has started to give passengers the alternative of incrementally meeting the costs of flights over time.
The Minneapolis-based airline announced last Thursday that it has teamed up with Uplift, an independent “buy now pay later solution” that distributes the price of purchases across monthly installments.
Sun Country clients can no longer choose to pay the total price of a trip or vacation in advance; instead, they can spread the payment over three, six, or eleven months. In addition, customers won’t pay any extra expenses, such as late charges and prepayment fines, although they might need to make a down payment or pay interest.
Patterson Companies Reports Q4 2022 results.
Patterson Companies, Inc (NASDAQ: PADCO) is up 9.01% after announcing consolidated net sales of $1.64 billion in the fourth quarter ending April 30, 2022. The revenue represents a 4.9% increase relative to the same quarter a year ago. In addition, internal sales that are adjusted for the impact of currency exchange, contribution from acquisitions, and changes in product selling relations were up 5.1% YoY.
Net income in the fourth quarter was $63.9 million or $0.65 per diluted share relative to $28.8 million or $0.3 per diluted share a year ago. Adjusted net income attributable o the company minus deal amortization, integration and restructuring expenses, and profits on investments was $70.4 million or $0.71 per diluted share. CEO Mark Walchirk said that the company delivered excellent quarterly results ending a year in which the company saw both topline and bottom-line growth exceeding expectations.