Stock Watch-list: LendingTree, Inc. (NASDAQ:TREE)

LendingTree, Inc. (NASDAQ:TREE) added a move of 3.79% to $201.69 for the day. The total traded volume were 614379 shares. The stock had closed at $194.33 on the previous day. The stock has recorded a 200-day Moving Average of -27.59% and the 50-Day Moving Average is -10.55%. Shares have moved -50.13% from its 1 Year high price and changed 10.06% from its 1 Year low price. The shares registered one year high at $404.40 and the one year low was seen at $183.25.

LendingTree, Inc. (NASDAQ:TREE) reported that its wholly-owned subsidiary, LendingTree, LLC, has completed the previously announced acquisition of QuoteWizard.com, LLC, one of the largest insurance comparison marketplaces in the growing online insurance advertising market. The acquisition of QuoteWizard marks LendingTree’s first official entry into the insurance vertical.

Doug Lebda, Founder and CEO of LendingTree said “I’m thrilled to formally welcome QuoteWizard to the LendingTree team”.  “Expanding LendingTree’s product portfolio through the acquisition of QuoteWizard creates an incredible opportunity to drive continued growth and deliver shareholder value by further diversifying the business, leveraging the strength of the LendingTree brand, and capitalizing on the ongoing digitalization of financial services.”

The equity purchase has a possible total consideration of $370.2 million, which consists of $300 million in cash at closing and contingent payments of up to $70.2 million, subject to achieving certain growth targets over a three-year period. The upfront payment was funded with a combination of $175 million cash on hand and $125 million borrowing against the Company’s revolving credit facility.

Expansion of Revolving Credit Facility

 

LendingTree, Inc. amended its Revolving Credit Facility to provide $100 million of increased borrowing capacity, bringing total borrowing capacity to $350 million.  Pricing and other terms and conditions of the revolver remain unchanged.

Inducement Grants

In connection with the acquisition of QuoteWizard, on October 31, 2018, the company granted restricted stock unit awards to one hundred forty-five key employees of QuoteWizard under its 2017 Inducement Grant Plan as a material inducement to entering into employment with the company.  The one hundred forty-five key employees were granted a total of 18,106 restricted stock units.  These restricted stock units will vest, if at all, over three years from the date of closing with one-third of the total award amount vesting each year. The awards provide for accelerated vesting in the event of certain events. The awards were approved in accordance with NASDAQ Listing Rule 5635(c)(4), which requires a public announcement of these awards.

LendingTree, Inc. is with Insider ownership of 5.60% and institutional ownership counts to 86.50%. Shares float is 7.59M and outstanding shares are at 13.78M. The float short is currently 29.79% and short ratio is 12.76.

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