B. Riley, Buyout Once Rebuffed, Raises Lazydays Stake
Investment firm paid an average $11.63 a share, less than half its $25 March offer
B. Riley Raises Lazydays Stake
Recreational vehicle maker Lazydays’ (NASDAQ:LAZY) shares swerved past the broader market’s potholes Monday, accelerating through the close to end up 5% after investment firm B. Riley bought more shares.
According to the latest insider data, Riley bought 7,527 LAZY shares at $12.20 each on July 14, bringing its total July purchases to 19,836 shares at a non-weighted average of $11.63.
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Lazydays shares closed Monday’s session at $13.54.
The two firms are no strangers.
In March, Lazydays’ board unanimously rejected B. Riley’s unsolicited $25 a share offer, with the shares at about $21. The company said it “determined that the proposal meaningfully undervalues the company and is not in the best interests of shareholders.”
Several travel-related stocks rose Monday, including Delta Air Lines (NYSE:DAL) and Carnival Cruise Lines (NYSE:CCL).
Investors may have taken to heart Bank of America CEO Brian Moynihan’s earlier comments that consumer spending and balance sheets appear resilient.
“Our U.S. consumer clients remained resilient with continued strong deposit balances and spending levels,” Moynihan said.
Nothing’s indicating a sudden reversal of fortune, and travel companies still face headwinds.
According to data from the U.S. Bureau of Labor Statistics, the index of airline fares fell 1.8% in June against the prior month as inflation corrodes households’ purchasing power.
Lazydays shares rebounded after the worst COVID pandemic, and in May, reported fiscal first quarter revenue rose 39%, to $376 million, while net income nearly tripled a year ago.
The shares rose about eight percent in the last 30 days but are 36% below where they began 2022.
Article by Joshua Enomoto, Fintel
Updated on
Source valuewalk
