Yext CEO Proposes Buyout at $9 Per Share, Shares Surge 12%

Yext (YEXT) CEO Michael Walrath has proposed a buyout of the remaining shares at $9 per share, causing a 12% premarket rally. Analysts predict a potential upside to $9.44, while GuruFocus estimates a fair value downside to $6.83. The board has formed a special committee to evaluate the proposal.

Yext Inc. (NYSE:YEXT) stock surged on Friday, July 2, 2025, following the announcement of CEO Michael Walrath's unsolicited proposal to acquire all outstanding shares of the company for $9 per share. The stock, which has delivered a remarkable 63.1% return over the past year, currently trades at $9.05, near its 52-week high of $9.15. According to InvestingPro analysis, the company’s market capitalization stands at $1.1 billion [1].

The proposal, submitted by Walrath, is backed by reputable and well-capitalized financing sources. The stock's premarket rally, which saw a 12% increase, was driven by investor optimism about the potential buyout. Analysts predict a potential upside to $9.44, while GuruFocus estimates a fair value downside to $6.83 [2].

The company has formed a special committee to evaluate the proposal and consider any superior offers that might be received. Needham analyst Ryan MacDonald reiterated a Buy rating and $10.00 price target on the stock, citing growing momentum of Yext’s new Scout offering and the potential for additional offers [1].

Yext Inc. reported its fiscal Q1 2026 earnings, meeting the earnings per share forecast of $0.12 and surpassing revenue expectations with $109.5 million compared to the projected $107.6 million. The company has withdrawn its fiscal year 2026 guidance, which includes the second-quarter results expected in early September [3].

The board's decision to form a special committee indicates a thorough evaluation process. The committee will work with its legal and financial advisors to carefully review and consider the proposal, as well as any other strategic alternatives that may be available, consistent with its fiduciary duties to stockholders [3].

Investors should closely monitor the developments surrounding this proposal, as it could significantly impact Yext's stock price and market capitalization. The proposal is non-binding and subject to customary conditions, including negotiation of definitive agreements and the completion of satisfactory due diligence.

References:
[1] https://www.investing.com/news/analyst-ratings/yext-stock-rises-after-ceo-walrath-offers-9-per-share-buyout-proposal-93CH-4198138
[2] https://www.marketscreener.com/news/michael-walrath-chief-executive-officer-and-chairman-of-yext-inc-submitted-a-non-binding-acquisit-ce7c51dcd88bf522
[3] https://www.businesswire.com/news/home/20250817046561/en/Yext-CEO-Submits-Non-Binding-Acquisition-Proposal-Expresses-Openness-to-Alternative-Bidders-in-Pursuit-of-Maximizing-Stockholder-Value