adventtr/iStock via Getty Images Investment thesis It's been almost two years since I last covered WEX ( WEX ), and while the stock now looks like a clear value bet with depressed multiples and aggressive buybacks, my conviction in the underlying business isn't as strong as it once was. WEX isn't a bad company, but when compared to a similar business and one of its main competitors that appears to...
adventtr/iStock via Getty Images Investment thesis It's been almost two years since I last covered WEX ( WEX ), and while the stock now looks like a clear value bet with depressed multiples and aggressive buybacks, my conviction in the underlying business isn't as strong as it once was. WEX isn't a bad company, but when compared to a similar business and one of its main competitors that appears to be acting more decisively in the most attractive segment of the industry, the relative opportunity becomes hard to ignore, which is why I've assigned it a hold rating. The Mobility segment overshadowed growth It's been almost two years since my last coverage of WEX, and during that time the company has gone through a challenging period in terms of growth. But with fiscal year 2025 officially closed, there seems to be light at the end of the tunnel. At first glance, 2025 was a pretty bad year, with sales growing by just over 1%, partly caused by poor Q1 and Q2, where sales decreased over 2% in both quarters, and even during Q1, the gross margin went below the usual 70%, a bad sign and one that had been dragging on since the end of 2024, when sales fell 4%. Part of the explanation for this performance was that the company lost a major client, which inevitably impacted year-over-year comparisons. However, during Q3 and especially Q4, an improvement in growth was noticeable, with Q3 reporting 4% growth and Q4 reaching 5.7% growth, exceeding analysts' expectations for both sales and profits. This marks what I consider the end of a challenging period for the company. WEX investor presentation If we break down the performance by segment, we can see that in Q4 the Mobility segment remained stable but masked the good performance of the Benefits segment, which showed a growth of 10% and Corporate Payments which grew by 18%, while also being the segment with the highest margins in the company. This is because Mobility is tied to fuel prices, which is not ideal considering the long-te...
bo feng/iStock via Getty Images TLDR: Before market open, on February 10, 2026, Yext, Inc. ( YEXT ), commenced a modified Dutch auction self-tender offer to repurchase up to $180 million of its own stock with a price range of $5.75 (minimum price) through $6.50 (maximum price). During the day (February 10) following the announcement, the shares traded as low as $5.46, which is $0.29 (5%) lower tha...
bo feng/iStock via Getty Images TLDR: Before market open, on February 10, 2026, Yext, Inc. ( YEXT ), commenced a modified Dutch auction self-tender offer to repurchase up to $180 million of its own stock with a price range of $5.75 (minimum price) through $6.50 (maximum price). During the day (February 10) following the announcement, the shares traded as low as $5.46, which is $0.29 (5%) lower than the bottom of the offer range (the "minimum price") of $5.75. This allowed you, a sharp-shooting arbitrageur, to buy shares at $5.46 and tender them before the offer expires. For your shares that are accepted for purchase you will receive at least $5.75 and as much as $6.50 per share. If the offer is oversubscribed, only a portion of your shares will be purchased, so it's important to consider your downside risk. Arbs should continue watching the price closely, as the market often provides even more lucrative entry prices during the tender offer period. Background Yext, Inc. is an internet company providing a brand visibility digital platform. The company is incorporated in Delaware, and the stock is registered on the NYSE. Michael Walrath, the CEO and Chairman of the Board of Directors of Yext. Inc. had offered in August of 2025 to take the company private at $9.00 per share in cash via a management buyout. Unfortunately for shareholders, Mr. Walrath recently (on February 2, 2026) announced that he withdrew his proposal as he “would not be able to obtain the necessary financing”. Perhaps to prevent or soften the expected price collapse caused by the withdrawal of the buyout offer, the company simultaneously announced an upcoming self-tender offer for $150 million of its common stock “expected to commence in February 2026”. On February 10, the company announced the commencement of the offer and an increase of the buyout funds to $180 million. What is a Dutch Auction Tender Offer? A Modified Dutch Auction Self-Tender Offer is a stock repurchase mechanism where the company ...