NV5 Global Shares Soar 17.72% Amid Merger News

NV5 Global(NVEE) shares surged 17.72%, reaching their highest level since November 2024, with an intraday gain of 19.95%.

The strategy of buying NVEE shares after they reach a high and holding for 1 week resulted in poor performance over the past 5 years. The strategy's return was -35.95%, significantly underperforming the benchmark return of 44.90%. The excess return was -80.85%, and the CAGR was -17.25%, indicating substantial losses. The strategy also had a high maximum drawdown of -50.07% and a Sharpe ratio of -0.56, suggesting significant risk and negative returns.

NV5 Global is currently in the process of merging with Acuren Corporation in a deal valued at $420 million in cash. NV5 shareholders will receive $23.00 per share, comprising $10.00 in cash and $13.00 in Acuren common stock. This merger is anticipated to close in the second half of 2025, resulting in Acuren stockholders owning approximately 60% of the combined company, while NV5 stockholders will own about 40%.

On May 15, 2025, Tim Mulrooney from William Blair downgraded NV5 Global from an "Outperform" to a "Market Perform" rating. This change in rating could influence investor sentiment and affect stock prices. The downgrade comes at a time when the company is undergoing significant changes due to the merger, which could add to the uncertainty surrounding the stock's performance.