Viad Corp (NYSE:VVI) shares reached a 52-week high of $44.73, marking a significant milestone for the company's stock performance over the past year. This peak represents a robust recovery and growth, as reflected in the impressive 1-year change data, with the stock value surging by 44.74%. Investors have shown increased confidence in Viad Corp's market position and future prospects, contributing to the stock's upward trajectory and its current standing at this new high-water mark.
In other recent news, Viad Corp has announced a definitive agreement to sell its GES business to Truelink Capital for $535 million, set to close by the end of 2024. This strategic move will result in GES becoming a standalone entity within Truelink’s portfolio, while Viad plans to rebrand as Pursuit. Pursuit, which welcomed 3.5 million visitors in 2023, generating revenue of $350 million, will use the proceeds from the GES sale to retire Viad's 2021 Credit Facility and further its growth strategy.
Following the transaction, David Barry, President of Pursuit since 2015, will take on the roles of CEO and President. Notably, Viad's Q2 2024 earnings surpassed expectations, with strong performances from the GES and Pursuit divisions. Additionally, Jill Bright has been appointed to Viad Corp's Board of Directors, set to serve until the 2025 annual meeting of stockholders.
Oppenheimer has reaffirmed its Outperform rating on Viad Corp, expressing confidence in the company's capacity for recovery and growth. Viad Corp is also investing in its Pursuit division, allocating $20 million for build and refresh projects in 2024, despite adjusting its full-year guidance for adjusted EBITDA due to wildfire-related uncertainties. These developments reflect recent changes within the company.
InvestingPro Insights
Viad Corp's recent stock performance aligns with several key financial metrics and analyst observations. According to InvestingPro data, the company's revenue growth has been strong, with an 18.18% increase in quarterly revenue as of Q2 2024. This growth is complemented by a significant EBITDA growth of 38.28% over the last twelve months, indicating improved operational efficiency.
InvestingPro Tips highlight that Viad Corp is trading near its 52-week high, which corroborates the article's main point about the stock reaching a new peak. Additionally, the company is expected to remain profitable this year, which may contribute to investor confidence. However, it's worth noting that the stock's price movements are quite volatile, which could present both opportunities and risks for investors.
For those seeking a deeper analysis, InvestingPro offers 11 additional tips that could provide further insights into Viad Corp's financial health and market position.
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