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Stock Market Today, Oct. 12: CCC Intelligent Solutions Surges 8% on Advanced Buyout Talks

Via Motley Fool

CCC +8.12% ^GSPC -0.06% GWRE -1.54% ^IXIC -0.44% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

CCC Intelligent Solutions Holdings (NASDAQ:CCC), a cloud software and AI provider for auto-insurance claims and repair workflows, closed at $7.59, up 8.12%. Premarket reports of advanced buyout talks drove the move, and investors are watching for any deal confirmation next week. Trading volume reached 34.0M shares, coming in about 208% above its three-month average of 11.0M shares. CCC Intelligent Solutions Holdings IPO'd in 2020 and has fallen 36% since going public.

The S&P 500 (SNPINDEX:^GSPC) fell 0.05% to 7,808, and the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.44% to 27,246. Among insurance software and AI platforms for property and casualty claims and workflow automation, Guidewire Software (NYSE:GWRE) closed at $164.72, down 1.55%.

CCC Intelligent Solutions saw its stock rise 7% last Friday after news first broke of acquisition talks with private equity firms GTCR and Elliott Management, and it jumped another 8% today as the rumors persisted.

While no specific terms have been announced, there is likely still upside in CCC stock if the parties reach a deal, as the company remains more than 40% below its 2023 all-time high. At that time, private equity firms Bain Capital and TPC were considering picking up the company for roughly $8 billion, but the deal fell through.

Now trading with a market cap of only $4.2 billion, CCC stock looks even more appealing, especially given the company's lack of success in public markets despite its rather steady, cash-generating operations.

I don't hold CCC stock, but if I did, I would be in no hurry to sell it just yet, as its unique niche and recurring revenue model give it "bidding war" upside, especially with a notable name like Copart also eying the stock.

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Josh Kohn-Lindquist has positions in Copart. The Motley Fool has positions in and recommends Copart. The Motley Fool recommends CCC Intelligent Solutions. The Motley Fool has a disclosure policy.

Stock Market Today, Oct. 12: CCC Intelligent Solutions Surges 8% on Advanced Buyout Talks was originally published by The Motley Fool

Read original at Yahoo Finance News

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