What Happened?
Shares of social club operator Soho House (NYSE:SHCO) jumped 65.2% in the pre-market session after the company received an acquisition offer from a new third-party consortium for $9.00 per share, representing a premium of 83% to the closing price as of Wednesday, December 18, 2024. This is driving the stock action. As for the quarter, Soho House beat analysts' EPS expectations while revenue was in line. On the other hand, full year revenue guidance was lowered, which is never a good sign.
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What The Market Is Telling Us
Soho House’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. But moves this big are rare even for Soho House and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 9.9% on the news that the company reported fourth quarter results that missed analysts' revenue and EPS expectations. Guidance was also weak as full-year revenue and adjusted EBITDA projections missed, and its number of members fell short of Wall Street's estimates. Overall, this was a weaker quarter for Soho House.
Soho House is up 13.8% since the beginning of the year, and at $7.65 per share, it is trading close to its 52-week high of $7.67 from December 2023. Investors who bought $1,000 worth of Soho House’s shares at the IPO in July 2021 would now be looking at an investment worth $604.27.
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