Sportradar (SRAD, Financial) Group has unveiled plans for a secondary public offering, wherein a total of 23 million Class A ordinary shares will be sold by affiliates of the Canada Pension Plan Investment Board, Technology Crossover Ventures, and Sportradar's CEO, Carsten Koerl. This move is part of a strategic maneuver to recalibrate the company's share distribution.
Simultaneously, Sportradar has greenlit the purchase of 3 million of its Class A ordinary shares from the underwriters. The purchase price will match the one at which the underwriters acquire shares from the selling shareholders during the Secondary Offering, with a ceiling of $75 million. This initiative aligns with Sportradar's existing $200 million share repurchase program, and it will be financed using available cash reserves.
Interestingly, the underwriters will not earn any underwriting fees for the shares repurchased by Sportradar. The secondary offering will see the involvement of financial heavyweights Goldman Sachs & Co. and J.P. Morgan, who are serving as joint book-running managers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Sportradar Group AG (SRAD, Financial) is $26.79 with a high estimate of $32.06 and a low estimate of $19.38. The average target implies an upside of 6.99% from the current price of $25.04. More detailed estimate data can be found on the Sportradar Group AG (SRAD) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Sportradar Group AG's (SRAD, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sportradar Group AG (SRAD, Financial) in one year is $20.20, suggesting a downside of 19.33% from the current price of $25.04. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sportradar Group AG (SRAD) Summary page.
