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Here is why CAI International Inc (CAI) stock skyrocketed in the after-hours on Thursday?

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CAI International Inc. (CAI) shares started Thursday, June 17, 2021, trading by going down 4.38% and close the normal trading session at $38.16 per share. But in the after-hours, CAI stock surged 45.13% and reached $55.38 per share price. CAI shares have risen 118.68% over the last 12 months, and they have moved up 0.82% in the past week. Over the past three months, the stock has lost 14.99%, while over the past six months, it has shed 18.29%.

Mitsubishi HC Capital Inc acquiring CAIInternational

On June 17, 2021, CAI International, Inc entered into a definitive agreement to be acquired by Mitsubishi HC Capital Inc. MHC will acquire all of CAI’s outstanding and fully diluted common stock in an all-cash transaction for $56.00 per share, which represents a total equity value of approximately $1.1 billion.

Mitsubishi HC Capital has offered $56 per share in cash according to the company’s statement, marking a 46.8% premium over CAI’s last closing price.

Recent financial results

On April 29, 2021, CAI International announced its financial results for the first quarter of 2021.

Q1 2021 financial highlights

  • CAI international reported a total leasing revenue of $80.8 million in Q1 2021 compared to $69.1 million in Q1 2020.
  • Net income from continuing operations attributable to CAI common stockholders was $32.5 million, or $1.85 per fully diluted share for the first quarter of 2021 compared to $10.5 million or $0.59 per fully diluted share in Q1 2020.
  • Total operating expenses were $32.04 million in Q1 2021 compared to $36.73 million in Q1 2020.
  • For Q1 2021, Return on common equity on adjusted net income from continuing operations was 21.3% compared to 7.1% in Q1 2020.
  • CAI’s Board of Directors declared a cash dividend of $0.30 per common share payable on June 25, 2021, to shareholders of record as of June 10, 2021.

Q4 and FY 2020 financial results announcement

On February 16, 2021, CAI International, Inc released its financial results for the fourth quarter and full year of 2020.

Q4 and FY 2020 financial highlights

  • CAI International reported revenue of $81.57 million for Q4 2020 and $294.0 million for the full year 2020.
  • Total operating expenses were $34.88 million for Q4 2020 and $144.72 million for FY 2020.
  • For Q4 2020, net income was $14.23 million and for FY 2020, net income was $27.73 million.
  • Net income attributable to CAI common stockholders was $12.03 million for Q4 2020 and 18.9 million for FY 2020.

Conclusion

The acquisition deal at an exceptional price per share took the CAI stock price to new heights and we can expect it to continue its surge on Friday as well.

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