The company announced it had priced its 14 million shares of common stock at $18.25. The underwriters also have a 30-day option to buy up to an additional 2.1 million shares of common stock. Goldman Sachs is the head book-running manager on the offering and represents the underwriters. Bank of America/Merrill Lynch and RBC Capital Markets also act as joint book-running managers.
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TheStreet Ratings team rates BANKRATE INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANKRATE INC (RATE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: