Investnet
jumped 9% on Tuesday after a news report said the company was exploring options that could include potentially selling it to a private equity firm.
Envestnet had a difficult 2023, marked by a drop in its share price and layoffs.
Courtesy of Envestnet
Envestnet shares were trading around $61.31 Tuesday afternoon, below their 52-week high of $68.83. The stock has struggled in 2023, crashing late in the year before launching a rally that has seen it gain 25% year to date.
Reuters first reported news sales negotiations, citing unnamed sources.
A company representative declined to comment. “The company does not comment on market rumors or speculation,” he said.
Envestnet provides software and other technology to wealth management firms and other financial institutions. It has had a difficult 2023, marked by a decline in its stock price and layoffs. In December, Bloomberg News reported that Envestnet is considering a sale of data aggregation unit Yodlee.
The company has a market capitalization of approximately $3.1 billion.
Earlier this year, Envestnet co-founder and CEO Bill Crager said he would resign March 31. A search is underway for his replacement. The Berwyn, Pennsylvania-based company posted a loss in the fourth quarter The group’s operating profit was $183.2 million, or $3.35 per share. The company will release its first-quarter results on May 7, after the market closes.
Write to Andrew Welsch at andrew.welsch@barrons.com