Why Jamf (JAMF) Stock Is Falling Today

Radek Strnad /
2024/05/14 3:37 pm EDT

What Happened:

Shares of apple device management company, Jamf (NASDAQ:JAMF) fell 13.7% in the afternoon session after it announced a secondary offering of nearly 9 million of its common stock by investment funds affiliated with Vista Equity Partners at a price of $18.25 per share. Jamf itself is not selling any shares in this offering and will not receive any proceeds from the sale but will incur the costs associated with it. Additionally, Jamf agreed to repurchase 2 million shares of its common stock from the underwriters at the same price.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Jamf? Access our full analysis report here, it's free.

What is the market telling us:

Jamf's shares are somewhat volatile and over the last year have had 14 moves greater than 5%. But moves this big are very rare even for Jamf and that is indicating to us that this news had a significant impact on the market's perception of the business. 

The biggest move we wrote about over the last year was 3 months ago, when the stock dropped 17.3% on the news that the company reported fourth-quarter results with full-year revenue guidance below estimates, suggesting a slowdown in demand. The company did narrowly topped analysts' revenue expectations. Management provided some details on the factors impacting the weak outlook for 2024. These include 1.) Constrained hiring practices in the tech space, as 46% of ARR (annual recurring revenue) comes from information and communication segments 2.) COVID and its lingering effects on the education sector. 3.) Less strategic revenue sources projected to perform slightly worse than in 2023. Overall, this was a weaker quarter for Jamf.

Jamf is up 2.3% since the beginning of the year, but at $17.75 per share it is still trading 20.3% below its 52-week high of $22.27 from July 2023. Investors who bought $1,000 worth of Jamf's shares at the IPO in July 2020 would now be looking at an investment worth $452.68.

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