IAC/InterActive's digital media unit, Dotdash will acquire Meredith Corp. in an all-cash transaction valued at $2.7 billion. The combined entity will be named Dotdash Meredith and will be led by Dotdash CEO Neil Vogel, according to the two companies’ statement.
Under the terms of the deal, Dotdash will pay $42.18 a share for Meredith.
Meredith is a publisher of magazines such as People, Better Homes & Gardens and Southern Living. Dotdash currently has about 100 million online monthly consumers and owns 14 media brands in health, finance and lifestyle.
The Meredith acquisition will be funded by IAC using cash on hand and newly incurred debt.
The acquisition is subject to some regulatory approvals.
“The transaction has been unanimously approved by the boards of directors of both IAC and Meredith Corporation and is not conditioned on an IAC or Meredith Corporation shareholder vote,” the companies said in the statement.
The 50-day moving average for IAC moved above the 200-day moving average on June 02, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
IAC moved above its 50-day moving average on April 28, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for IAC crossed bullishly above the 50-day moving average on May 04, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IAC advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for IAC moved out of overbought territory on May 19, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 24, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on IAC as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for IAC turned negative on May 25, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IAC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
IAC broke above its upper Bollinger Band on May 10, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. IAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.795) is normal, around the industry mean (21.666). IAC has a moderately high P/E Ratio (147.059) as compared to the industry average of (41.149). Projected Growth (PEG Ratio) (0.772) is also within normal values, averaging (3.365). Dividend Yield (0.000) settles around the average of (0.023) among similar stocks. P/S Ratio (1.008) is also within normal values, averaging (10.102).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. IAC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of diversified media, Internet and e-commerce services
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A.I.dvisor indicates that over the last year, IAC has been loosely correlated with ANGI. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if IAC jumps, then ANGI could also see price increases.
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