What Happened?
Shares of machinery provider H&E (NASDAQ: HEES) jumped 18.8% in the pre-market session after Herc Holdings made an offer to buy the company for $104.89 per share in cash and stock, a 14% premium over the pending $92 per share sale to United Rentals. According to the terms of the deal, HRI's offer will generate $300 million of EBITDA by the end of the third year after closing.
Is now the time to buy H&E Equipment Services? Access our full analysis report here, it’s free.
What The Market Is Telling Us
H&E Equipment Services’s shares are quite volatile and have had 15 moves greater than 5% over the last year. But moves this big are rare even for H&E Equipment Services and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about a month ago when the stock gained 107% on the news that the company agreed to a $4.8 billion takeover by United Rentals, with shareholders receiving $92 per share in cash. This valuation includes about $1.4 billion in net debt. This acquisition value represents more than a 100% premium over HEES's trading price a day before news of the deal was announced.
H&E Equipment Services is up 107% since the beginning of the year, and at $100.16 per share, has set a new 52-week high. Investors who bought $1,000 worth of H&E Equipment Services’s shares 5 years ago would now be looking at an investment worth $3,426.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
