SFX Entertainment Named One of Top 5 Stocks to Own This Week
SFX Entertainment is a publicly traded electronic dance music live event producer, putting on events like Belgium’s signature festival, Tomorrowland, the North American counterpart TomorrowWorld and New York’s iconic festival Electric Zoo, amongst many others. The stock for SFX Entertainment (NASDAQ: SFXE) was named as one of Investor Place’s top 5 stocks to own this week. This happened amidst swirling rumors of CEO Robert Sillerman’s plans to go private with the company.
On February 23rd, Sillerman, who owns a 40% stake in SFX Entertainment, announced his intentions to take the company private and buy back any publicly held stock at $4.25/share. This announcement followed a recent dip in the stock price of SFX Entertainment, to an all-time low of $3.20 earlier in February. Investors, however, believe that Sillerman is severely undervaluing the stock and that shares are - in fact - worth double. Following Sillerman’s announcement this week, SFX’s stock shot up from $3.50 to $5.25 before settling down and closing at $4.75 at the end of the week.
What makes SFXE such an interesting stock is whether or not Sillerman actually plans on buying back all the publicly traded shares and at what price. It’s clear that such a move would have an enormous impact on the music industry as SFX Entertainment is one of the world’s largest live music event production companies. Make sure to check back as we keep you posted on SFXE.