Sigmatron International (SGMA) Shares Soar 131.78% on Acquisition News

Sigmatron International (SGMA) shares surged 130.23% over the past two days, marking a 147.50% increase in the past two days. The stock price reached its highest level since November 2024 today, with an intraday gain of 131.78%.

The strategy of buying SGMA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.5% annualized gain. However, the overall performance was slightly underwhelming, as the strategy lagged the benchmark by 2.5 percentage points. This result suggests that while the strategy provided some growth, it may not have been the most effective approach, especially considering the volatility of the stock.

On May 21, 2025, Sigmatron International (SGMA) announced its acquisition by Transom Capital. The deal, valued at $83 million, offers a 134% premium at $3.02 per share. This merger is subject to the successful completion of a tender offer and is expected to close in the third quarter of 2025. The acquisition news has prompted investigations by firms such as Halper Sadeh LLC to determine if the sale terms are fair to shareholders. The announcement has led to a surge in SigmaTron's stock price, providing substantial returns for investors.

Investors have responded positively to the acquisition news, with the stock price reflecting the market's optimism about the future prospects of the company under new ownership. The significant premium offered by Transom Capital indicates a strong belief in the potential of Sigmatron International, which could lead to further growth and development opportunities. The merger is expected to bring strategic benefits, including enhanced operational efficiency and expanded market reach, which could drive long-term value for shareholders.

However, the acquisition has also raised concerns about the fairness of the sale terms to existing shareholders. Firms such as Halper Sadeh LLC have initiated investigations to ensure that the deal is in the best interest of all stakeholders. These investigations are crucial in maintaining transparency and accountability in the acquisition process, and they could potentially influence the final outcome of the merger. Investors are advised to stay informed about the progress of these investigations and the overall status of the acquisition to make well-informed decisions.