In a challenging market environment, Vista Outdoor Inc . (NYSE:GEAR) stock has recently traded at $21.92, showing resilience after touching a 52-week low of $14.99. According to InvestingPro data, the stock has demonstrated strong performance with a 26.44% gain year-to-date and nearly 50% return over the past year. The company maintains a "GREAT" Financial Health Score of 3.61, suggesting solid fundamentals. Investors are closely monitoring the stock as it navigates through the volatile market conditions, balancing the recent lows with the impressive annual growth. Trading at a P/E ratio of 17.53, the stock has caught analysts' attention. InvestingPro has identified 10 additional investment tips for GEAR, including insights about shareholder yield and future profitability expectations, available exclusively to subscribers.
In other recent news, Vista Outdoor Inc. has been involved in significant financial and strategic developments. The company's stockholders have approved the sale of The Kinetic Group to Czechoslovak Group a.s. (CSG), with the transaction set to close later this year. Vista Outdoor stockholders will receive $25.75 in cash and one share of Revelyst common stock per share of Vista Outdoor common stock they own. Revelyst is also expected to be acquired by Strategic Value Partners, LLC in an all-cash transaction estimated at $1.125 billion by January 2025.
Further, Vista Outdoor has confirmed agreements to sell its business in two separate transactions totaling $3.35 billion. The company plans to sell its sporting goods division, Revelyst, to Strategic Value Partners (SVP) for $1.1 billion, and its ammunition unit, Kinetic, to Czechoslovak Group (CSG) for $2.2 billion.
On the financial side, Vista Outdoor reported a 7.1% decrease in total sales to $644.2 million and a 6.5% decline in earnings per share to $1.01. Despite these results, Revelyst is expected to double its Adjusted EBITDA sequentially for the quarter and the year.
Roth/MKM has downgraded Vista Outdoor's stock from Buy to Neutral, while Gates Capital Management, a significant shareholder, has urged Vista to pursue an all-cash sale of the entire company. These are the recent developments in Vista Outdoor Inc.'s operations.
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