Echo Global Logistics Accepted an Acquisition Offer and McAfee Corp Announced a Public Offering 📈
Echo Global Logistics Accepted an Acquisition Offer and McAfee Corp Announced a Public Offering
Echo Global Logistics
Echo Global Logistics is an industrial company that provides transportation services and supply chain management solutions. They are in the Windy City, and they have a market cap of $1.27 billion, which might be a bit higher than usual.
This is because it was announced on Friday that Echo would be bought by private equity firm The Jordan Company for $1.3 billion in cash, which was a massive premium for shareholders. This follows a flurry of logistic company acquisitions, and it shows that Wall Street could be undervaluing these businesses even though they are made for these types of situations where supply chains need help with management. Investors loved this news as Echo closed the day at $47.70, up 52.30%.
McAfee Corp is a technology company located in San Jose, California. They focus on cybersecurity and privacy initiatives for their consumers, and they were in the news recently as their founder, John McAfee, passed away.
On Friday, the cybersecurity firm announced a public offering of 20 million shares, which essentially means they sold it off. This hurts stock prices because it dilutes their earnings per share and it often brings negative sentiment on the company, but it’s necessary for companies to do this sometimes. It played out how people expected it, with McAfee stock closing at $20.90, down 10.38%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.