ADTH - AdTheorent: Fair Value With Or Without A Deal

2024-05-07 02:01:35 ET

Summary

• ADTH shares have more than doubled since I first covered the stock last August.
• The company agreed to a buyout at $3.21 per share, and a 33-day "go shop" period expired May 4th.
• During the Go-Shop Period, a second potential buyer emerged with a non-binding offer at $3.35 per share.
• While the balance sheet is in great shape, AdTheorent's Q1-24 performance missed on both the top and bottom line.
• Given the current share price proximity to both potential buyout offers, I suspect ADTH is essentially at fair value at this point.

When I last covered AdTheorent Holdings ( ADTH ) for Seeking Alpha, the company's stock was trading at a discount to book value. As a company that has already benefited from the technological innovation that has fueled a lot of hype elsewhere in the market, I felt longing ADTH shares was a solid speculative opportunity at a low valuation multiple. This is what I said in my closing summary:

For a company that utilizes machine learning and has a real functioning product that generates revenue in the market, there is absolutely no hype whatsoever with this name from where I sit. I like that. Especially considering the froth we're currently witnessing in other AI-linked equities.

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