Shares of Mimecast Ltd. (MIME) have surged 78.9% over the past 12 months. The company provides information and email cloud security and risk management services.
Recently, Mimecast delivered a robust performance for the third quarter on both its top-line and bottom-line fronts. Revenue jumped 17% year-over-year to $151.6 million beating estimates by $1.4 million. Earnings per share at $0.38 came in ahead of expectations by $0.04. The average order value per customer for the company increased 15% over the prior year to $15.2 thousand.
Notably, the acquisition of Mimecast by Permira is expected to close in the first half of 2022. Upon closing, Mimecast will be a privately held company.
With these developments in mind, let us take a look at the changes in Mimecast’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Mimecast’s top risk category is Finance & Corporate, contributing 15 of the total 49 risks identified for the stock, compared to a sector average of 16 risk factors under the same category.
In its recent report, the company has added one key risk factor under the Finance & Corporate risk category.
In December 2021, Mimecast agreed to be acquired by an entity affiliated with Permira for ~$5.8 billion. There can be no assurance if this transaction will close on the proposed terms or within the anticipated timeframe.
The risk remains that if this transaction does not close, then the company’s business, financials, and share price could take a hit.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in Mimecast by 4.8 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock based on activities of 2 hedge funds.
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