Quick Look:
- Perficient’s stock soared after an analyst upgrade and acquisition news, peaking at $73.70.
- Multiple analysts upgraded Perficient, with targets ranging from $59 to $77.
- EQT AB announced its acquisition of Perficient for $3 billion, offering $76 per share.
- Notable insider sales and strong institutional interest were observed.
- Perficient has strong liquidity with ratios of 4.15 and a P/E of 26.54.
Perficient, Inc., a leading digital consultancy firm, witnessed a significant surge in its stock price on Monday, April 29th, following an analyst upgrade from Scotiabank. The stock, which previously closed at $48.11, opened at $73.70 before settling at $73.43. Trading volume was robust, with 4,164,401 shares changing hands. Scotiabank’s upgrade boosted the target price from $50.00 to $76.00, coupled with a “Sector Perform” rating.
Other analysts also offered their insights, with Alliance Global Partners raising their rating from “Neutral” to “Buy” and setting a target price of $67.00 on April 23rd. William Blair maintained a “Market Perform” rating, while JPMorgan Chase & Co. revised their target from $71.00 to $59.00 and rated the stock as “Neutral”. Barrington Research gave an “Outperform” rating with a target of $77.00, and Guggenheim set a “Neutral” rating with a target price of $65.00. The average rating for Perficient was “Hold,” with an average target price of $69.50.
EQT AB Offers $3 Billion, 75% Premium for Perficient
Adding to the momentum, news broke that EQT AB would acquire Perficient for $3 billion, offering $76.00 per share, representing a 75% premium over the unaffected closing price and a 51% premium over the 30-day volume-weighted average price. The deal is expected to close by the end of the year, with unanimous support from Perficient’s board. The stock responded favourably, with a 52.8% increase and a trading volume 252,800 against an average volume of 313,000.
Insider Sales: CFO Sells $246K, SVP Sells $47K
In insider news, Perficient’s CFO Paul E. Martin sold 3,664 shares on February 21st at an average price of $67.26, for a total of $246,440.64. He retained 212,642 shares, valued at $14,302,300.92. SVP Kevin Thomas Sheen sold 684 shares on the same day at an average price of $69.04, for a total of $47,223.36, retaining 26,533 shares valued at $1,831,838.32.
Institutional investors showed significant activity, with Quantbot Technologies LP initiating a new position valued at $362,000 and Envestnet Portfolio Solutions Inc. increasing their position with an additional 7,433 shares valued at $418,000. Leith Wheeler Investment Counsel Ltd. took a new stake worth $4,574,000, while Texas Permanent School Fund Corp increased its holding by 30,432 shares, valued at $1,713,000. Fidelis Capital Partners LLC also opened a new position worth $25,000, contributing to a total institutional ownership of 95%.
Institutional Investors Increase Perficient Stake to 95%
Perficient’s stock performance has been robust, with a 50-day SMA of $54.81 and a 200-day SMA of $61.39. The market capitalisation stands at $2.57 billion, with a P/E ratio of 26.54 and a PEG ratio of 1.17. The company’s beta is 1.46, while its current and quick ratios are both at 4.15, indicating strong liquidity. The debt-to-equity ratio is 0.75.
Perficient’s last earnings report on February 27th reported an EPS of $0.99, slightly below the consensus of $1.01. Revenue was $220.79 million, against a consensus of $223.79 million, representing a 5.1% decrease year-over-year. The return on equity was 23.39%, and net margin stood at 10.91%. The forecasted EPS is 3.42.
Leading Digital Firm with $2.57B Market Cap
Perficient, Inc. is a leading digital consultancy providing services in digital and technology strategy, business velocity and growth, organisational change management, analytics, artificial intelligence, machine learning, big data, business intelligence, and custom product portfolios. The company continues solidifying its industry leader position through strategic growth and innovation.