Latest news with #RenaissanceIPOETF
Business Insider
2 days ago
- Business
- Business Insider
Firefly Aerospace Stock (FLY) Craters Nearly 30% after Strong IPO
Texas-based space company Firefly Aerospace (FLY) saw its stock plunge on Friday, just one day after its trading debut. This drop wiped out most of the gains from Thursday, when excitement around the company's IPO pushed shares up sharply. The dip suggests that investor excitement may be cooling off after a strong initial surge, but the company is still in the spotlight following its high-profile market entry. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Indeed, the company raised nearly $870 million through an upsized IPO and saw its shares close 34% above the offering price of $45. This comes after Firefly overcame some major challenges in recent years, including bankruptcy and rocket development delays. In fact, the firm is gaining traction with big clients, such as the U.S. Space Force, and claims to be the first private company to achieve a soft landing on the Moon. Firefly is also part of the current trend of successful IPOs in 2025. Other new listings, like stablecoin issuer Circle (CRCL) and design software company Figma (FIG), have also performed well. According to Renaissance Capital, this year's $100 million-plus IPOs have seen a median first-day gain of over 18%, the best since 2021. In addition, the Renaissance IPO ETF (IPO), which tracks these companies, is up 12% so far this year, thereby outperforming the S&P 500's (SPY) 8% gain. Is FLY Stock a Buy? It's too early for analysts to rate Firefly Aerospace's stock. So instead, we'll look at the performance of its rival, Voyager Technologies (VOYG), which went public recently. As one can see below, the stock currently has a Moderate Buy consensus rating based on five Buys and two Holds issued in the last three months. Furthermore, the average VOYG price target of $49 implies 59.7% upside from current levels.
CNBC
17-06-2025
- Business
- CNBC
IPOs are the hot trade right now. Here's the outlook for the second half
High-profile initial public offerings in recent weeks have left investors wondering if the new issues market has woken up from a years-long slumber. Several companies that went public in the second quarter outperformed. Stablecoin issuer Circle priced its IPO above the expected range this month and went on to more than double in its first trading day. Online banking stock Chime soared in its Nasdaq debut after also pricing above the range that underwriters had marketed. Stock brokerage eToro rallied almost 29% after pricing above the expected range when making its IPO in May. The same month Hinge Health climbed 17% in its first trading day, giving the health technology company a market value above $3 billion. "We're in a really good position right now in U.S. markets," said Avery Marquez, director of investment strategies at Renaissance Capital, which provides pre-IPO research and IPO-centered ETFs. "There's a lot of momentum right now" heading into the second half. Now, the revival in the IPO market is lifting sentiment toward companies waiting on the sidelines, although opinion is mixed as to whether the recent strength can continue at the same pace. The U.S. IPO market has so far seen 150 deals in 2025 that raised nearly $27 billion in 2025, the most since 2021, according to Dealogic, a firm that tracks capital markets activity. Beating low expectations Such explains the surge in the Renaissance IPO ETF (IPO) , which invests in companies that have just gone public. The exchange traded fund has surged more than 17% this quarter, more than double the 7.5% gain in the S & P 500 in the same period. IPO .SPX 3M mountain Renaissance IPO ETF vs. S & P 500, 3-month The IPO rebound is a reversal from where investors expected the market to be at this point, said Renaissance's Marquez. The unveiling of President Donald Trump's tariff policy introduced uncertainty into the market and hampered returns, leaving traders worried that the pipeline would slow, she said. Some companies that had thought they'd go public instead delayed their IPOs as the stock market plunged in reaction to Trump's trade policies. The new issue market's performance in May and June beat low expectations, Marquez said, fueled by broader market's rally after President Trump paused his high tariff plan. With the 90-day pause expiring in early July, investors may be in a better position to absorb such shocks in the future, knowing that some U.S. trading partners have struck deals, or the outline of deals, to avoid the full impact of proposed duties, Marquez said A 'clogging situation' To be sure, the IPO market is still constrained by tighter financial conditions as a result of the Federal Reserve's tightening cycle since 2022, according to Peter Boockvar, chief investment officer at Bleakley Financial Group. Many companies are reluctant to go public now because they assume they'll get a lower valuation than would have been the case when interest rates were lower. Higher rates have also made investors more focused on current profits or the path to profitability, adopting a "show-me-the-money" mentality when it comes to evaluating companies that could IPO. "There's a clogging situation where not that many [potential candidates] are going public," Boockvar said. "There are tens of thousands of businesses that are on private equity and venture capital balance sheets that ... don't necessarily have an exit strategy that they hoped for," the CIO said. "It clogs up the entire financing network if you don't have a vibrant and robust and active IPO market." Even after four years, the U.S. IPO market is still recovering from the bull market of 2021, when interest rates were near zero. That year, more than 1,000 U.S. companies went public, raising a combined $315 billion. The year before, almost 500 companies raised $168 billion. Indeed, while Renaissance's ETF has recently outperformed, the fund is still more than 30% off its all-time high from 2021. That also helps explain why the U.S. appears to be losing its grip on the IPO market. Dealogic data shows U.S. IPOs accounted for 48% of global capital raised by new issues so far in 2025, down from 58% in the same period of 2021. Individual stocks tied to the recent IPO resurgence have also faced questions. Bank of America this week downgraded CoreWeave , which went public in March, to neutral from buy. The majority of analysts have hold-equivalent ratings on the stock and expect the share price to pull back, based on the consensus 12-month price target, per LSEG. Bank of America cited the huge runup since the seller of artificial intelligence technology in the cloud priced its IPO. At the time, CoreWeave's $1.5 billion IPO marked the largest technology offering to date on Wall Street since 2021. Public vs. private pipeline Renaissance's Marquez said there is a slim pipeline of companies that have publicly filed to go public, and are waiting for their holding period to expire. But she said there's a "ton" of movement in the private pipeline, comprised of companies that have said in news stories they have filed confidentially or are working with banks on an IPO plan. Because of the strength in the private pipeline, Marquez said investors can expect a more normalized fall calendar for IPOs. "Sometimes, investors get stuck looking at what's right in front of them ... looking at that public pipeline," Marquez said. "But investors need to kind of take a step back and ... look at these names that are still in the news, still making headlines as making progress towards an IPO, but not necessarily right in that public pipeline."
Yahoo
15-05-2025
- Business
- Yahoo
Birkenstock CEO Is Confident Tariffs Is Not A Disadvantage For The Brand
Birkenstock Holding plc (NYSE:BIRK) shares are trading higher on Thursday after the company reported the second-quarter FY25 results. Revenue grew 19% year over year (Y/Y) on a reported and 18% Y/Y on a constant currency basis to 574 million euros. Revenue growth was driven by double-digit unit growth and mid-single-digit growth in Average Selling Price (ASP). Adjusted EPS stood at 0.55 euro, up 34% Y/Y, in the quarter. In U.S. dollars, revenue of $603.62 million beat the street view of $567.17 million, and adjusted EPS of 58 cents exceeded the consensus of 54 company witnessed double-digit revenue growth across all segments, including 20% Y/Y in the Americas, 12% in EMEA, and 30% in APAC on a constant currency basis. DTC and B2B revenue grew 17% Y/Y and 18% Y/Y, respectively, on a constant currency basis. B2B revenue growth was led by strong Spring/Summer sell-in (sandals/closed-toe), and DTC revenue growth was aided by digital and strong retail. The gross profit margin reached 57.7%, an increase of 140 basis points from the 56.3% reported in the second quarter of 2024. This improvement was driven by adjustments to sales prices, better utilization of the new manufacturing capacity that came online in September 2023, and a positive impact from currency translation. Adjusted EBITDA rose 23% Y/Y to 200 million euros, with an adjusted EBITDA margin of 34.8%, which was up 110 basis points Y/Y. Operating cash outflow rose to 18 million euros in the quarter. As of March 31, 2025, Birkenstock had cash and cash equivalents of 235 million euros. FY25 Outlook: The company now expects FY25 revenue growth to be at the upper end of its prior guidance of 15% to 17% in constant currency and raised adjusted EBITDA margin by 50 basis points to 31.3% to 31.8%. Oliver Reichert, CEO and Member of the Board of Directors said, 'We expect that the tariff situation may create a unique shift in consumer behavior in the footwear category with a split between the few brands, like BIRKENSTOCK, who manage strong brand equity through relative scarcity and those who distribute their products with less discipline and pricing integrity. We will navigate these uncertain times from a position of strength.' Investors can gain exposure to the stock via Renaissance IPO ETF (NYSE:IPO). Price Action: BIRK shares are up 6.04% to $57.78 at the last check on Thursday. Image by Josh Forden via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Birkenstock CEO Is Confident Tariffs Is Not A Disadvantage For The Brand originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
