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What's Going On With Angi Stock Tuesday?

Benzinga ·  Jan 14 15:34

Angi Inc (NASDAQ:ANGI) shares are trading higher Tuesday after IAC Inc (NASDAQ:IAC) announced plans to spin off its stake in Angi.

What To Know: IAC announced late Monday that its board approved a plan to spin off its full stake in Angi to IAC shareholders. In connection with the spin-off, IAC's Joey Levin will leave his role as CEO and become an advisor to the company. Levin will also be named executive chairman of Angi.

"Each of IAC and Angi has a vigorous future, and I expect to remain an active participant in both. I am energized to partner with Jeff Kip and the leadership team he has organized at Angi to win a large, captivating category that has yet to be tamed," Levin said.

The spin-off transaction is expected to be tax-free giving IAC shareholders direct ownership of Angi, resulting in IAC and Angi becoming wholly separate entities. The spin-off will be in the form of one share/one vote common stock of Angi, eliminating Angi's dual-class structure.

IAC management believes the spin-off will allow the company to focus on its broader portfolio, as well as new growth opportunities. Angi is expected to benefit from a more attractive equity currency to accelerate growth as a fully independent company.

The transaction is expected to close in the first half of 2025, but the company noted that it will not occur before March 31.

Is ANGI A Good Stock To Buy?

Wall Street analysts view Angi on the whole as a Neutral, given the history of coverage over the past three months. Ygal Arounian from Citigroup in Angi is the most bearish, expecting a 38.46% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, Angi fell 32.28%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which fell 20.2% over the past year.

A complete overview of how Wall Street views individual stocks is available here, while real time updates on the latest analyst actions will be delivered via Benzinga PRO. Try it for free.

ANGI Price Action: Angi shares were up 2.24% at $1.595 at the time of writing Tuesday, according to Benzinga Pro.

Photo: Shutterstock.

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