logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Benefitfocus Shares Soar 100 Percent on First Day of Trading

By  +Follow September 18, 2013 1:01PM
Share:
Tickers Mentioned:

Benefitfocus, Inc. ($BNFT), a provider of cloud-based benefits software solutions for consumers, employers, insurance carriers and brokers, rang the opening bell at Nasdaq Wednesday, which seemed more like a shot signaling for the stock to start sprinting straight ahead on its first day of trading. 

As Equities.com analyst Francis Gaskins noted in his IPO report on Benefitfocus, the company is a subsidiary of The Goldman Sachs Group (GS) , which holds 66-percent of pre-IPO shares, making it likely that the company would promote it to its clients.  Gaskins also noted “…the IPO market likes cloud-based software companies with a subscription-based revenue stream,” even though Benefitfocus has yet to deliver up to expectations.

In the six months ended June 30, revenue at Benefitfocus climbed to $48.2 million, up about 25 percent from the year prior quarter.  Net loss was $16.0 million for the quarter.

In addition to the IPO hype and the run to new highs on Wall Street with the Federal Reserve opting to hold off on tapering for the moment, it also seems that Benefitfocus got a lift from Walgreen Co. (WAG) announcing today that it is going to provide its more than 160,000 eligible employees with employer-sponsored health insurance coverage in 2014.  Time Warner Inc. (TWC) and International Business Machines Corp. (IBM) have recently announced similar plans to move employees to private health exchanges, decisions that fall right into the wheelhouse of Benefitfocus.

There’s been plenty of debate about the rise of private health exchanges that are cropping up all over the country in response to Obamacare, which will provide subsidies to low- and middle-income Americans to help pay healthcare costs starting in 2014.  Some employers are shying away from public markets (which is where anyone receiving a subsidy will go) and setting up private insurance plans. 

Benefitfocus, which offers software to manage those types of benefit plans, is betting that more large companies will continue to go the private exchange route.  The company says there are about 18,000 large companies (more than 1,000 employees) in the U.S. that are potential clients.  Right now, Benefitfocus has about 350 of those companies in its portfolio.

4.935 million shares were priced at $26.50, $2.00 more than the high end of the expected range.  Those original prices were left in a cloud of dust with the stock printing $42.50 at the opening bell.  Shares rose as high as $55.87 before closing the first day at $53.55 for gains of 102 percent from the IPO price.

Goldman, Sachs & Co., Deutsche Bank Securities Inc. and Jefferies LLC acted as the book-running managers for the offering with Canaccord Genuity Inc., Piper Jaffray & Co. and Raymond James & Associates, Inc. serving as co-managers.  The underwriters were a granted 30-day option to purchase up to 740,250 shares of BNFT stock at the IPO price.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for bnft
equities.com
31 Oct 14 16:04:21
Benefitfocus Inc (BNFT) Jumps 7.07% on October 31 $bnft http://t.co/o4hoiEDrHu
Stockaholics
31 Oct 14 13:36:03
Our Penny Stock Alerts Gained 250% In 2 days, So far! Big News: http://t.co/bMKiKj7wmb $XTXI $BNFT $DDC
Stockaholics
31 Oct 14 11:22:34
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $XTXI $BNFT $DDC
iHangout
31 Oct 14 08:37:39
http://t.co/Vv1sYDyeQn chartguy89: Stock Charts: BNFT 27.48 Stock Charts $BNFT Benefitfocus Inc. http://t.co/BSoabejmDx
chartguy89
31 Oct 14 08:33:15
BNFT 27.48 Stock Charts $BNFT Benefitfocus Inc. (NASDAQ) Last Updated: 10/31/2014 10:33:14 BNFT Stock Chart - http://t.co/rcVgFTliAS
Stockaholics
31 Oct 14 03:59:05
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/gDCrqEFOy6 $XTXI $BNFT $DDC
Stockaholics
30 Oct 14 22:01:08
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $XTXI $BNFT $DDC
InsiderTradingWire
30 Oct 14 19:47:07
$BNFT | Benefitfocus, Inc is down 34% since we reported $104,679,570 of insider selling on 07/24/2014. Did you ... - http://t.co/YWddz70qqu
Stockaholics
30 Oct 14 16:51:44
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $XTXI $BNFT $DDC
Stockaholics
30 Oct 14 01:40:50
VIICQ Closed up 75% Yesterday! Special Update: http://t.co/8A33lxh1RR $XTXI $BNFT $DDC
stockblaster14
29 Oct 14 22:08:57
Benefitfocus Inc (BNFT) 25.59 $BNFT Transamerica offers employers new option to enroll employees in voluntary http://t.co/SP25RGlwpx
Stockaholics
29 Oct 14 21:39:16
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $XTXI $BNFT $DDC
wininstocks2014
29 Oct 14 20:11:46
BNFT 25.59 Stock Charts $BNFT Benefitfocus Inc. (NASDAQ) Last Updated: 10/29/2014 22:11:52 BNFT Stock Chart - http://t.co/NqdgoPXa5E
Stockaholics
29 Oct 14 17:44:26
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $XTXI $BNFT $DDC
Stockaholics
29 Oct 14 13:49:45
Subscribe to our Penny Stock Newsletter, for the best penny stock picks, for FREE: http://t.co/5DC8vbG515 $XTXI $BNFT $DDC
Analyst Ratings
29 Oct 14 12:57:57
Get the latest news and updates for $ADR $TCS $LIN $MRTX $BNFT automatically with ARN Daily http://t.co/nSJuDsYidj
Stockaholics
29 Oct 14 10:06:18
Subscribe to our Penny Stock Newsletter, for the best penny stock picks, for FREE: http://t.co/5DC8vbG515 $XTXI $BNFT $DDC
4-traders.com
29 Oct 14 06:05:11
Benefitfocus : Transamerica offers employers new option to enroll employees in voluntary benefits with Bene... http://t.co/To4OsKrCq0 $BNFT
john smith
29 Oct 14 06:04:34
$BNFT - Transamerica offers employers new option to enroll employees in voluntary benefits with Benefitfocus http://t.co/07sIwq57IK
Stockaholics
29 Oct 14 02:28:07
Major New Penny Stock Pick Coming Today! Get The Exclusive First Look: http://t.co/vVXyqlasuZ $XTXI $BNFT $DDC
Stockaholics
28 Oct 14 21:01:39
After 371% Gains Our New Penny Stock Pick Is Coming Tomorrow! Get It Early: http://t.co/Nmnx36zJMR $XTXI $BNFT $DDC
Stock Relay
28 Oct 14 18:36:11
stockblaster14: Stock Alerts: Benefitfocus Inc (BNFT) 24.99 $BNFT Benefitfocus http://t.co/kTjKqV1R8d
stockblaster14
28 Oct 14 18:24:32
Benefitfocus Inc (BNFT) 24.99 $BNFT Benefitfocus HR Intouch Marketplace chosen by Outsource M2 - Mon Oct 27, 6 http://t.co/EP7SwvZTf9
Stockaholics
28 Oct 14 17:12:46
After 371% Gains Our New Penny Stock Pick Is Coming Tomorrow! Get It Early: http://t.co/Nmnx36zJMR $XTXI $BNFT $DDC
Stockaholics
28 Oct 14 08:42:12
After 371% Gains A Major New Penny Stock Pick Is Coming: http://t.co/1aBeBJdWkA $XTXI $BNFT $DDC
Stockaholics
28 Oct 14 00:34:31
After 371% Gains A Major New Penny Stock Pick Is Coming: http://t.co/1aBeBJdWkA $XTXI $BNFT $DDC
Stockaholics
27 Oct 14 20:52:35
371% Gains And A New Penny Stock Pick Is Coming Today! Get It Early: https://t.co/jbhQATzxpj $XTXI $BNFT $DDC
Stockaholics
27 Oct 14 15:59:14
371% Gains And A New Penny Stock Pick Is Coming Today! Get It Early: https://t.co/jbhQATzxpj $XTXI $BNFT $DDC
InsiderTradingWire
27 Oct 14 07:30:17
$BNFT | Benefitfocus, Inc is down 39% since we reported $104,679,570 of insider selling on 07/24/2014. Did you ... - http://t.co/UXscAHBNwI
Stockaholics
27 Oct 14 02:09:00
371% Gains And A New Penny Stock Pick Is Coming Today! Get It Early: https://t.co/jbhQATzxpj $XTXI $BNFT $DDC
Stockaholics
26 Oct 14 18:19:50
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $XTXI $BNFT $DDC
Stockaholics
26 Oct 14 11:37:35
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $XTXI $BNFT $DDC
wininstocks2014
26 Oct 14 05:55:40
BNFT 24.99 Stock Charts $BNFT Benefitfocus Inc. (NASDAQ) Last Updated: 10/26/2014 07:55:39 BNFT Stock Chart - http://t.co/qY3yv6sf3C
Stock Relay
25 Oct 14 14:21:17
$EMITF Short Sales Click Here: http://t.co/D7kIJy8ECA Also See: $SLB $BNFT $TTGT $AAPL ~
Stock Relay
25 Oct 14 13:38:14
wininstocks2014: Stock Charts: BNFT 24.99 Stock Charts $BNFT Benefitfocus Inc. http://t.co/uXigXEvufD
stockblaster14
25 Oct 14 11:47:03
Benefitfocus Inc (BNFT) 24.99 $BNFT Outsource, LLC Selects Benefitfocus HR INTOUCH MARKETPLACE® PR Newswire - http://t.co/hUA0iI9pZo
Stockaholics
25 Oct 14 02:31:46
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/Wsu24zYrur $XTXI $BNFT $DDC
Stockaholics
24 Oct 14 23:40:47
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $XTXI $BNFT $DDC
wininstocks2014
24 Oct 14 21:24:15
BNFT 24.99 Stock Charts $BNFT Benefitfocus Inc. (NASDAQ) Last Updated: 10/24/2014 23:24:14 BNFT Stock Chart - http://t.co/HYai9mv0vT
john smith
24 Oct 14 14:28:20
$BNFT - Statement of Changes in Beneficial Ownership (4) http://t.co/W6HjTpa3Kr
NASDAQ
24 Oct 14 14:28:05
$BNFT - Statement of Changes in Beneficial Ownership (4) http://t.co/wOfph18kp0
Stockaholics
24 Oct 14 14:18:50
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $XTXI $BNFT $DDC
InsiderTradingWire
24 Oct 14 11:00:22
$BNFT | Benefitfocus, Inc is down 35% since we reported $104,679,570 of insider selling on 07/24/2014. Did you ... - http://t.co/Z9XaKE7J6M
Stockaholics
24 Oct 14 09:52:01
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $XTXI $BNFT $DDC
Stock Moo
24 Oct 14 08:36:43
$bnft: Outsource, LLC Selects Benefitfocus HR INTOUCH MARKETPLACE® http://t.co/FAkzHfURBv
Stock Moo
24 Oct 14 08:36:41
$bnft: Outsource, LLC Selects Benefitfocus HR INTOUCH MARKETPLACE® http://t.co/gpZPzyKabp
4-traders.com
24 Oct 14 08:05:02
Benefitfocus : Outsource, LLC Selects Benefitfocus HR INTOUCH MARKETPLACE® http://t.co/GCnEI3FE0W $BNFT
john smith
24 Oct 14 08:02:04
$BNFT - Outsource, LLC Selects Benefitfocus HR INTOUCH MARKETPLACE® http://t.co/0tEeDYOF8F
NASDAQ
24 Oct 14 08:02:02
$BNFT - Outsource, LLC Selects Benefitfocus HR INTOUCH MARKETPLACE® http://t.co/N8g2H5nDE6
stockblaster14
23 Oct 14 21:09:40
Benefitfocus Inc (BNFT) 25.97 $BNFT RHA Management Services picks Benefitfocus HR Intouch Marketplace M2 - Mon http://t.co/P4BclJtrW5
				
				
By  +Follow September 18, 2013 1:01PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.