Shares of Chicago-based meals delivery service Grubhub is sharply higher in standard trading today after The Wall Street Journal reported that the corporation had hired external advisers to explore its “strategic” options, inclusive of a doable sale.
Traders, heartened by the information, bid its fairness up 17% as of the time of writing, valuing the agency at around $57 per share, or $5.2 billion.
The information comes throughout a troublesome time for the corporation. Grubhub’s worth fell sharply final October after it reported its third-quarter earnings.
At the time, the corporation cited new and rising competitors as development-associated difficulties, in addition to noting that, in its view, “the provision improvements in on-line takeout have been performed out and annual development is slowing and returning to an extra regular longer-time period state.” It anticipated “low double-digit” progress sooner or later.
Traders dumped their shares after studying the expansion warnings, sending Grubhub fairness from the excessive $50s per share to the mid-$30s. Since then, the corporate’s share value has recovered; with at this time’s information, Grubhub is successfully again to the place it was earlier than the Earnings Report from Hell.