News Spotlight: Blucora (NASDAQ:BCOR)

Blucora (NASDAQ:BCOR) changed -0.35% to recent value of $25.63. The stock transacted 270672 shares during most recent day however it has an average volume of 327.64K shares. It spotted trading -31.05% off 52-week high price. On the other end, the stock has been noted 39.29% away from the low price over the last 52-weeks.

 On Jan. 7, 2020, Blucora (NASDAQ:BCOR) a leading provider of tax-smart financial solutions that empower people’s goals, released it has entered into an agreement to acquire privately-held HK Financial Services (HKFS), a CPA-focused, (captive) registered investment advisor (RIA). The combination adds approximately $4.4 billion to Blucora’s total client assets, bringing the total to more than $72 billion, with approximately 42% in advisory assets.

This transaction further reinforces Blucora’s strategy of delivering tax-advantaged wealth management solutions to advisors and end-clients while maintaining healthy margins and profitable growth, said John Clendening, President and Chief Executive Officer of Blucora. We look forward to joining with HK Financial Services to provide more CPA firms, advisors and end-clients with additional capabilities and choice, while providing our Avantax advisors new opportunities for growth, broader solution sets, efficiency and profitability.

The complementary nature of the transaction is expected to expand Blucora’s established leadership in tax-aware investing and enhance its ability to better service clients and enable better outcomes through four primary drivers:  

  • Increasing Blucora’s total addressable market by swiftly entering the large, adjacent captive RIA space that has favorable tailwinds and is the fastest growing segment in the wealth management industry, featuring attractive recurring revenues.
  • Expanding Blucora’s product offerings enabling it to serve more CPA firms and tax professionals in more ways, expanding the reach of its Tax-Smart Investing software, as well as enabling the company to offer end-to-end retirement plan services for small business clients.
  • Enhancing the company’s revenue growth rate, increasing margins and being accretive to EBITDA, EPS and free cash flow with the addition of a strong growth and profit engine in HKFS.
  • Providing multiple avenues for enhancing future growth opportunities by improving asset retention, increasing prospect conversion and offering turn-key retirement plan services to the full Avantax advisor and customer base, all on top of what is a highly scalable HKFS platform

 BCOR has a gross margin of 51.10% and an operating margin of 2.40% while its profit margin remained 2.20% for the last 12 months. Its earnings per share (EPS) expected to touch remained 758.50% for this year while earning per share for the next 5-years is expected to reach at 20.00%.

 The company has 49.46M of outstanding shares and 48.16M shares were floated in the market. According to the most recent quarter its current ratio was 1.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of 1.54% from the mean of 20 days, 10.94% from mean of 50 days SMA and performed -5.01% from mean of 200 days price. Company’s performance for the week was -2.18%, 10.24% for month and YTD performance remained -1.95%.

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