Vista Group International Ltd (ASX: VGL) had a stellar trading day on Monday. The ASX tech stock finished trading at $1.97, up 17.61% after touching a 52-week high of $2.04 near the market open this morning.
Today's share price increase follows a substantial block trade led by Jarden Securities. Let's take a closer look at how events unfolded.
What happened to this ASX tech stock today?
Shares in the ASX tech stock rocketed today, driven by a $92.2 million block trade led by Jarden, which amounts to around 23% of the company's market capitalisation.
The substantial transaction was executed at $2.10 per share, representing a 14% premium to the last closing price of $1.84. Vista shares are swapping hands at $1.98 at the time of writing.
Software and technology private equity firm Potentia Capital was behind the trade, according to The Australian Financial Review. It acquired just under 20% of Vista Group's shares, sparking speculation about the company's future.
The reporting also noted that fund managers Spheria Asset Management and Wilson Asset Management sold their stock to Potentia.
"Another fund sold into the trade just before market open, taking Potentia to the maximum permissible 19.9% pre-bid stake", it said.
Vista Group's surge
This ASX tech stock, known for its innovative software solutions in the global film industry, has garnered attention with today's sharp increase. Vista provides software and technology solutions to various players in the film industry, including distributors, moviegoers, and others.
In 2023, it produced revenues of $143 million, up 6% year over year, while earnings before interest, tax, depreciation and amortisation (EBITDA) were 25% higher at $13.3 million.
Last year, my colleague James noted that investors were bidding up the ASX tech stock after "it announced the commencement of an organisational transformation".
In that report, management said it aimed to make the company's free cash flow positive by the end of 2024 – a year earlier than previously expected.
Vista Group share price
In the past 12 months, the Vista Group share price has climbed 52% into the green, bouncing off 52-week lows in November last year.
As with any investment, understanding Vista Group's business model and market position is crucial. This involves a deep dive into all the moving parts, from financials to valuation.
While today's surge is impressive, the software sector can and does experience fluctuations. Potentia, Wilson, and Spheria differ in their views on the company. Investors interested in this ASX tech stock should conduct thorough research or seek professional advice.
