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Benefitfocus Shares Soar 100 Percent on First Day of Trading

By  +Follow September 18, 2013 1:01PM
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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.

Results for bnft
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21 Apr 14 05:06:17
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21 Apr 14 03:11:49
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19 Apr 14 12:15:11
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19 Apr 14 02:55:04
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19 Apr 14 02:02:43
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chartguy89
18 Apr 14 22:27:40
BNFT 39.21 Stock Charts $BNFT Benefitfocus Inc. (NASDAQ) BNFT Stock Chart - 1 Month http://bigcharts.marketwat http://t.co/gobUtM7cmP
Josue Dollar
18 Apr 14 10:31:52
$BNFT Weekly 3-Year Low Highlights: VH http://t.co/LiCUG5m0as
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18 Apr 14 09:30:49
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18 Apr 14 08:59:02
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Stock_Tracker
17 Apr 14 17:10:44
Benefitfocus Inc (BNFT) 39.21 $BNFT AmeriGas picks Benefitfocus benefits enrollment, communication, analysis M http://t.co/hSluHqMqTn
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17 Apr 14 11:20:06
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17 Apr 14 10:06:09
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17 Apr 14 09:45:03
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17 Apr 14 06:59:40
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US Banking News
17 Apr 14 05:51:20
Benefitfocus Receives New Coverage from Analysts at William Blair $BNFT http://t.co/4PDRkmr8XP
US Consumer News
17 Apr 14 05:17:10
Benefitfocus initiated by William Blair at market perform. http://t.co/u4vB0cJImH $BNFT #BNFT
Analyst Ratings
17 Apr 14 05:16:32
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17 Apr 14 03:17:55
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17 Apr 14 02:58:53
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16 Apr 14 21:44:05
$BNFT Drop in Tech Stocks Hits Startup Funding http://t.co/4OwhTWqdL5
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16 Apr 14 20:55:05
Benefitfocus : Southeastern Freight Lines Selects Benefitfocus HR InTouch Marketplace http://t.co/pM0lomYMty $BNFT
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16 Apr 14 20:46:04
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Jeraldine Ison
16 Apr 14 20:37:04
$BNFT Weekly 3-Year Low Highlights: VH http://t.co/dsE83KfCmi
Kermit Bailey
16 Apr 14 20:17:35
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Demarcus Griffin
16 Apr 14 17:21:56
$BNFT Weekly 3-Year Low Highlights: VH http://t.co/agC2EKd0ln
Vijay Aswani
16 Apr 14 10:46:20
$BNFT Finally in the green. Let's hope the news of Amerigas with 9000+ employees takes this stock places.
immoderacyf
16 Apr 14 06:50:56
$BNFT Why Benefitfocus (BNFT http://t.co/MIeUxbzCSV
NeuberryS
16 Apr 14 02:06:37
$BNFT Why Benefitfocus (BNFT) Stock Is Up Today http://t.co/no0E8n4rVi
NeuberryS
15 Apr 14 21:34:35
$BNFT Why Twitter, Trina Solar, and Benefitfocus Jumped Today http://t.co/ilyyXPBxPo
Pedro villar
15 Apr 14 19:49:40
Nice reversal on higher volume $BNFT and lock up period gone. It should move higher now.
Fox Galvan
15 Apr 14 19:14:33
$BNFT Weekly 3-Year Low Highlights: VH http://t.co/Sv8kMMRvGQ
stocknews247
15 Apr 14 17:47:05
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Peter D. Hofmann
15 Apr 14 13:34:35
$BNFT: Why Benefitfocus (BNFT) Stock Is Up Today http://t.co/T0fFSf8pT9
NeuberryS
15 Apr 14 13:28:04
$BNFT Why Benefitfocus (BNFT) Stock Is Up Today http://t.co/no0E8n4rVi
Informer
15 Apr 14 13:16:11
$BNFT: Why Benefitfocus (BNFT) Stock Is Up Today http://t.co/ZIOk7J4pPP
Alexander Morris
15 Apr 14 11:25:05
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Amias Evans
15 Apr 14 08:00:30
$BNFT Weekly 3-Year Low Highlights: VH http://t.co/h1lPzmICkG
Large Void Bot
15 Apr 14 07:30:12
New 52wk Lows: $BNFT
StockNewsNet
15 Apr 14 06:15:12
$BNFT - AmeriGas Selects Benefitfocus for Benefits Enrollment, Communication a... -> http://t.co/Ba028f3GQv #stock #stocks #stockaction
NeuberryS
15 Apr 14 06:12:10
$BNFT AmeriGas Selects Benefitfocus for Benefits Enrollment, Communication and Analysis http://t.co/UfaMOlJ6Cd
john smith
15 Apr 14 06:05:23
$BNFT - AmeriGas Selects Benefitfocus for Benefits Enrollment, Communication and Analysis http://t.co/vYymStger4
				
				
By  +Follow September 18, 2013 1:01PM
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