Boston, MA 08/14/2014 (wallstreetpr) – Private equity company, Warburg Pincus had offload a big chunk of shares of financial services provider Umpqua Holdings Corp (NASDAQ:UMPQ) on August 12. The move comes even as the consensus among the analysts’ has rated the stock as hold.
Offload Shares
The private equity company had sold 7.5 million shares in the open market on August 12, according to a filing with the Securities Exchange Commission or the SEC. Warburg had sold the shares at $16.16 a share that allowed them to realize the amount of $121.2 million. The private equity firm still has shares worth about $14.14 million, the SEC filing revealed.
Secondary Offering
A few days back, Umpqua Holdings had disclosed pricing of its 15 million shares in the second offering. At that time also, the selling stockholders were Warburg Pincus LLC and Thomas H Lee Partners’ affiliated funds. It had priced the share at $16.20, and the issue was expected to be completed by August 12, which was subject to closing norms.
Umpqua Holdings Corp (NASDAQ:UMPQ) had indicated that the proceeds from the offering would go only to the selling stockholders and not the company. J.P. Morgan was the sole book-runner for the secondary issue.
Rating of Stock
A month back, Barclays analysts had upgraded the stock of Umpqua Holdings Corp (NASDAQ:UMPQ) to an equal weight rating from underweight. They had also set up a price tag of $19.00, which was increased from its earlier price objective of $17.00. Currently, the shares of the company have an analysts’ average rating of Hold with the consensus price tag of $19.20 with four analysts’ favoring Hold, and the two analysts rating it as Buy.
Stock Price
The stock has a yearly high of $19.65 and a low of $15.56. Warburg’s selling price had only indicated that it had sold at 3.9% higher than the 52-week low price. However, the selling price was lower by 6% and 7.6% respectively over the 50-day and 200-day moving average price of $17.19 and $17.48 respectively.
