By Patrick Sanders
Aug. 10, 2015 | 10:43 a.m. EDT
These companies had big plans by going public this year. Some have
been great; others, not so much.
Fitbit Inc. (ticker: FIT)
IPO price: $20
Year-to-date performance: 50.27 percent
Fitbit looks like one of the feel-good IPO stories of 2015. Thewearable tech company offered more than 36 million shares on June 16 in a public offering valued at $741 million. Both consumers and investors were eager to strap on earnings, as FIT stock has exploded by 50 percent so far this summer.
Wingstop Inc. (WING)
IPO price: $19
YTD performance: 2.81 percent
The fast-food chicken wing eatery pleased analysts by recording better-than-expected earnings in June, reporting earnings per share of 11 cents and revenues of $19.2 million. Even more tasty is Wingstop’s plans to open 120 restaurants this year, pushing the company to about 900 eateries. The company offered 5.8 million shares of WING stock on June 12 and so far has returned growth of nearly 3 percent. While growth hasn’t been as explosive as Fitbit, investment firm Baird is bullish in WING stock, issuing a target price between $35 and $37 per share.
Etsy Inc. (ETSY)
IPO price: $16
YTD performance: -29.34 percent
What a nightmare for investors of ETSY stock. The online marketplace for crafts and collectibles had a great debut in April, seeing its stock jump by nearly 90 percent as it offered 16.6 million shares of stock in an IPO valued at $266 million. But a troublesome earnings report in August brought investors back to earth. Etsy officials revealed that user growth has slowed despite an increase of more than 70 percent in marketing dollars. And the fact that Amazon.com (AMZN) has announced a new venture, Handmade, that directly competes with Etsy will make future growth hard to come by.
IPO price: $22.50
YTD performance: 4.5 percent
TransUnion, a leading credit reporting agency, is more than managing to hold its own after offering 29.5 million shares of TRU stock in an IPO valued at $664 million on June 25. Despite lagging far behind Equifax Inc. (EFX) and Experian (EXPGY) in market capitalization, TransUnion stock has managed a solid 4.5 percent increase.
Box Inc. (BOX)
IPO price: $14
YTD performance: -39.69 percent
The online file storage and sharing company is cratering fast after a IPO on Jan. 23, in which the company offered 12.5 million shares of BOX stock in an offering valued at $175 million. BOX was hot when it started, as shares opened above $20 and closed more than 60 percent better than the company’s IPO price. But in July, the stock lock-up provision for initial investors expired and some of the company’s largest shareholders took their profits and ran, sending the stock tumbling and leaving those who bought in late holding the bag. BOX stock is down nearly 40 percent.
Party City Holding Co. (PRTY)
IPO price: $17
YTD performance: 17.24 percent
Investors in Party City, meanwhile, must be having a party after seeing PRTY stock move up more than 17 percent since the company’s successful IPO on April 16. The company offered 21.87 million shares of PRTY stock for $17 in an offering valued at $371.8 million. Of the nine brokerages following the stock, six have given it a “buy” recommendation and one a “strong buy” recommendation, with the other two rating the stock a “hold.”
GoDaddy Inc. (GDDY)
IPO price: $20
YTD performance: 0.27 percent
Known for its risqué Super Bowl commercials, the Internet domain company went public on April 1, offering 23 million shares of GDDY stock for $460 million. And while the company recently reported that its losses continued to grow – $71 million in the last quarter, compared to a loss of $43.3 million in the previous quarter – GoDaddysays it is on target to begin rolling out products in the Asia-Pacific region next year.
Shake Shack Inc. (SHAK)
IPO price: $21
YTD performance: 40.87 percent
Shake Shack’s IPO on Jan. 30 continues to be delicious for investors. The company offered 5 million shares in an offering valued at $105 million – small potatoes compared to some companies – but it’s been a win-win for the company and Wall Street. Even though the lock-up period has expired and initial investors were free to cash in their profits for more than double their initial investment, company officials are holding on to their shares. That optimistic outlook has made Wall Street bullish on SHAK stock, and made this company one of the most successful IPOs of the year.