MONSEY, N.Y., Sept. 11, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the $26.00 per share in cash pursuant to which Avantax, Inc. (Nasdaq: AVTA) (“Avantax”) has agreed to be sold to Cetera Financial Group (“Cetera”).
If you remain a Avantax shareholder and question the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/avantax/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On September 11, 2023, Avantax announced that it had agreed to be sold for $26.00 per share in cash to Cetera.
“We are investigating whether the Avantax Board of Directors acted in the best interests of Avantax shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to Avantax shareholders, as well as whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for Avantax in the last 90 days published on Seeking Alpha, there is an average price target of $29.00 per share, which indicates that several Wall Street analysts think the deal price is too low.
The deal price is also below Avantax’s 52-week high of $30.23 per share.
Finally, a discounted cash flow analysis of Avantax by Chatool Investments published on Seeking Alpha on June 25, 2023, yielded a fair value of $31.00 per share. This is slightly above the $30.00 per share that Avantax paid to repurchase and retire approximately 8.3 million shares of its common stock in a Dutch Auction tender offer commenced on January 27, 2023, and ended on February 24, 2023.
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
