In a significant transaction, Thoma Bravo UGP, LLC, through its affiliate Argus Seller, LP, has sold a substantial number of NASDAQ, INC. (NASDAQ:NDAQ) shares. On July 29, 2024, the entities sold 42,804,207 shares of NASDAQ's common stock at a price of $64.58 per share, amounting to a total of approximately $2.76 billion.
The sale was conducted as part of an underwritten public offering under NASDAQ's existing Registration Statement. Following the transaction, Argus Seller, LP holds the same number of shares, which indicates that the entirety of the position held was sold in the offering.
Thoma Bravo UGP, LLC is the ultimate general partner of various investment funds affiliated with Thoma Bravo, and Argus Seller, LP is a limited partner in these funds. According to the footnotes in the SEC filing, Thoma Bravo UGP, through its relationship with the investment funds and Argus Seller, may be deemed to beneficially own the shares sold, although they disclaim beneficial ownership except to the extent of their pecuniary interest.
The transaction was signed off by Holden Spaht, who serves as Vice President and Assistant Treasurer of Argus Seller, LP, and as Managing Partner of Thoma Bravo UGP, LLC. The sale represents a notable adjustment in Thoma Bravo's investment in NASDAQ, INC., and reflects a significant change in ownership of the company's common stock.
In other recent news, Nasdaq OMX Group Inc. has been a subject of significant financial developments. Oppenheimer, a leading investment firm, has maintained an Outperform rating on Nasdaq and raised the price target to $78.00 from the previous $75.00. This decision follows the recent transaction by Thoma Bravo, the largest shareholder of Nasdaq, who sold 41.6 million shares, generating approximately $2.79 billion.
Simultaneously, Nasdaq has initiated a share repurchase agreement to buy back 1,200,000 shares of its common stock, with Goldman Sachs (NYSE:GS) serving as the sole book-running manager for both transactions. In the wake of these events, Nasdaq reported a 10% increase in net revenues, reaching $1.2 billion, and a 7% rise in annualized recurring revenue (ARR) to $2.7 billion, as revealed in their second quarter earnings of 2024.
The Financial Technology division and capital access platforms played significant roles in driving revenue growth, with respective increases of 16% and 10%. Furthermore, Nasdaq's integration of the Adenza acquisition is progressing ahead of schedule. These are among the latest developments for Nasdaq.
InvestingPro Insights
The recent sale of NASDAQ, INC. (NASDAQ:NDAQ) shares by Thoma Bravo's affiliate Argus Seller, LP, comes at a time when NASDAQ's stock performance has been noteworthy. According to real-time data from InvestingPro, NASDAQ's market capitalization stands at $39.82 billion, with a Price/Earnings (P/E) ratio of 40.25, indicating that the stock is trading at a high earnings multiple. This valuation could have been a factor in Thoma Bravo's decision to capitalize on their investment.
The company's strong performance is also reflected in its price movements, with a 1 Year Price Total Return of 39.17% and trading near its 52-week high at 98.77% of the peak price. These metrics underscore the significant appreciation in NASDAQ's stock value, possibly influencing the timing of the large share sale.
For investors considering NASDAQ's stock, it's worth noting that the company has raised its dividend for 12 consecutive years, which is an important consideration for dividend-seeking shareholders. Additionally, 10 analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook for the company's financial performance. However, with an RSI suggesting the stock is in overbought territory, investors might proceed with caution.
For those looking for more in-depth analysis and additional insights, InvestingPro offers a range of tips on NASDAQ, INC. For instance, there are 13 additional InvestingPro Tips available, which can be accessed through the dedicated InvestingPro page for NASDAQ at https://www.investing.com/pro/NDAQ. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.