Stock Prices Climb 26.4% Amid Strong Trading Volume
Air Transport Services (ATSG) shares rose by 26.4% to $22 in the last trading session, supported by significant trading volume. Over the past month, the stock has gained 16.9%.
Stonepeak to Acquire ATSG for $3.1 Billion
The increase in ATSG’s stock price comes after the announcement of its acquisition by Stonepeak, a prominent alternative investment firm that focuses on infrastructure and real assets. The deal is valued at $3.1 billion and is set to be an all-cash transaction.
Under the terms of the agreement, unanimously approved by ATSG’s board, shareholders will receive $22.50 per share. This offer signifies a premium of roughly 29.3% over ATSG’s closing share price on November 1, 2024. Additionally, the purchase price reflects a 45.5% premium when compared to ATSG’s volume-weighted average price over the prior ninety trading days. The transaction is anticipated to finalize in the first half of 2025, pending customary closing conditions, transitioning ATSG into a private entity.
Quarterly Earnings Forecast Points to Decline
Looking ahead, ATSG is projected to report quarterly earnings of $0.19 per share, marking a significant decline of 40.6% compared to the previous year. Expected revenues are $507.86 million, which indicates a 2.9% decrease year-over-year.
Earnings Estimate Revisions May Impact Future Prices
Earnings and revenue growth are essential indicators for evaluating stock strength. Research highlights a strong link between earnings estimate revisions and stock price changes. For ATSG, the consensus EPS estimate has seen a 0.8% upward revision in the last month. A trend in positive revisions frequently leads to price increases, so investors should monitor ATSG for potential upward momentum.
Current Stock Ranking Highlights Positive Outlook
ATSG currently holds a Zacks Rank of #2 (Buy), signaling favorable investor sentiment. A full list of stocks earning a Zacks Rank of #1 (Strong Buy) is available for review.
FedEx’s Performance in the Same Industry
In the related Zacks Transportation – Air Freight and Cargo industry, FedEx (FDX) experienced a 1.2% drop, closing at $271.18. Over the past month, FDX has posted a 5.2% return. For FedEx, the consensus EPS estimate has decreased by 1.3% over the last month, now standing at $3.88, reflecting a year-over-year decline of 2.8%. FedEx holds a Zacks Rank of #3 (Hold).
Stock Insights from Zacks Investment Research
Air Transport Services Group, Inc (ATSG) and FedEx Corporation (FDX) both offer insights into the air freight industry dynamics. Interested readers can analyze their respective free stock analysis reports available from Zacks.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
