FOUR - Why Shift4 Payments Stock Dropped Another 20% Last Month
2024-04-04 18:34:00 ET
Shares of financial-technology (fintech) company Shift4 Payments (NYSE: FOUR) dropped 19.6% in March, according to data provided by S&P Global Market Intelligence . The company has been a rumored acquisition target. And for a brief moment, it looked like a deal would get done. But things fell apart in March, leading to the drop in stock price.
On Feb. 28, Shift4 stock soared after a Reuters report said that Amadeus and Fiserv were in a bidding war. D.A. Davidson analyst Peter Heckmann was quick to weigh in that Shift4 could be worth $130 per share or more in a buyout scenario. And that was really exciting considering it was trading below $90 per share at the time.
This all quickly changed in mid-March after Shift4 CEO Jared Isaacman told Bloomberg that the bids didn't "sufficiently value" the company and were consequently rejected. Looking at this from a cup-half-empty perspective, investors are concerned that apparently Shift4 isn't attractive enough to motivate a buyer to pay a fair price.
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Why Shift4 Payments Stock Dropped Another 20% Last Month