Accelerant (NYSE:ARX) Cut to “Market Perform” at William Blair

Accelerant (NYSE:ARX) was downgraded by equities research analysts at William Blair from an “outperform” rating to a “market perform” rating in a research note issued on Thursday.

Several other equities research analysts have also issued reports on ARX. Raymond James Financial upped their price target on Accelerant from $16.00 to $19.00 and gave the company an “outperform” rating in a research report on Monday, June 1st. Piper Sandler lifted their price target on Accelerant from $18.00 to $19.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Morgan Stanley cut their target price on Accelerant from $16.00 to $14.00 and set an “equal weight” rating for the company in a research report on Monday, July 6th. Wells Fargo & Company decreased their target price on Accelerant from $17.00 to $16.00 and set an “overweight” rating for the company in a research note on Thursday, July 9th. Finally, Weiss Ratings raised Accelerant from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, August 4th. Nine investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $18.60.

Accelerant Stock Up 43.4%

Shares of ARX stock traded up $5.91 on Thursday, hitting $19.52. The stock had a trading volume of 25,338,874 shares, compared to its average volume of 1,659,205. The firm has a market capitalization of $4.26 billion and a price-to-earnings ratio of -2.80. The stock’s 50 day moving average is $13.17 and its 200-day moving average is $13.11. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.61 and a current ratio of 1.61. Accelerant has a 52-week low of $9.18 and a 52-week high of $30.48.

Accelerant (NYSE:ARX) last released its quarterly earnings results on Thursday, August 13th. The technology company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.16. The firm had revenue of $303.90 million for the quarter. Accelerant had a negative net margin of 135.47% and a positive return on equity of 49.99%. As a group, research analysts expect that Accelerant will post 0.73 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Francis James Oneill sold 110,467 shares of the company’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $14.63, for a total value of $1,616,132.21. Following the transaction, the insider directly owned 6,626,772 shares of the company’s stock, valued at approximately $96,949,674.36. This represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jeffrey L. Radke sold 95,223 shares of the firm’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $14.60, for a total value of $1,390,255.80. Following the sale, the chief executive officer directly owned 27,751,939 shares of the company’s stock, valued at $405,178,309.40. This trade represents a 0.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,216,240 shares of company stock worth $16,146,480 over the last ninety days. 66.59% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Accelerant

Several hedge funds and other institutional investors have recently made changes to their positions in ARX. State of Wyoming bought a new stake in shares of Accelerant during the first quarter valued at approximately $28,000. Quarry LP bought a new stake in Accelerant in the 3rd quarter valued at $40,000. PNC Financial Services Group Inc. acquired a new position in shares of Accelerant in the 3rd quarter valued at $42,000. Royal Bank of Canada raised its stake in shares of Accelerant by 50.3% in the 1st quarter. Royal Bank of Canada now owns 7,729 shares of the technology company’s stock valued at $103,000 after buying an additional 2,585 shares in the last quarter. Finally, CWM LLC bought a new position in shares of Accelerant during the 4th quarter worth about $109,000.

Key Accelerant News

Here are the key news stories impacting Accelerant this week:

• Positive Sentiment: Thoma Bravo will pay $20.25 per share in cash to take Accelerant private, representing a substantial premium to ARX’s recent trading level. The offer is the primary catalyst for the stock’s increase and establishes a potential valuation floor, subject to shareholder and regulatory approvals. Reuters acquisition article
• Positive Sentiment: Accelerant reported second-quarter earnings of $0.32 per share on revenue of $303.9 million. The results provide additional support for the company’s operating momentum as the acquisition is evaluated. Accelerant second-quarter results
• Neutral Sentiment: The transaction would remove Accelerant from the public markets, limiting future upside for shareholders largely to the difference between the current share price and the $20.25 offer. The deal remains subject to customary closing conditions, creating potential merger-arbitrage risk if approval or financing issues arise. Accelerant Thoma Bravo agreement
• Negative Sentiment: Recent insider selling could weigh modestly on sentiment. CEO Jeffrey Radke sold 80,000 shares, while Francis James O’Neill sold 152,835 shares across August 10 and 11. However, the sales were made under pre-arranged Rule 10b5-1 plans, and both executives retain sizable stakes, reducing their significance relative to the acquisition announcement. Accelerant insider selling

About Accelerant

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company’s solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices.