Although Ellie Mae’s annual revenue has surged from an estimated US$480 million two years ago to US$900 million now, some people worry that the company has been making waves of house purchases and financing that may not be sustainable.
ICE’s opportunity to pay a high price for Ellie Mae caused ICE stock to fall in after-hours trading and Friday’s opening trading.
Voight said, but careful observation shows that this transaction will increase profits. “We obviously like this deal.”
He said that Ellie Mae is owned by a private equity firm that usually squeezes out costs from the company before selling. “But it’s the opposite. They invested in Ellie Mae.”
In a conference call with analysts later on Thursday, ICE CEO Jeffrey Sprecher called Ellie Mae “a digital platform,” which is used by nearly half of all home mortgage loans in the country.
On Friday, ICE stock rebounded slightly and closed at $100.96 per share, close to its annual high of $101.93. During the stock decline triggered by the pandemic earlier this year, ICE’s stock price fell to a low of $63.51.
Kenneth Hill, an analyst at Rosenblatt Securities, maintained a buy rating on ICE stock and set its target price at $104. Others are more optimistic. For example, Oppenheimer (Oppenheimer) set ICE’s buy rating at $109 per share.
ICE spokesperson Josh King said that at least so far, Ellie May’s 1,700 workers have not joined ICE’s 1,000 employees in Atlanta.
King said that overall, the company may remain low-key, but its pivotal aggressiveness has had an impact on the region. “We have a large workforce in Atlanta, which helps spread Atlanta’s financial technology expertise and reputation to all global capitals.”
When it comes to high-risk financial bets, ICE (with approximately 6,000 employees worldwide) has never been shy. The company has purchased many financial exchanges, the most famous being the New York Stock Exchange for $8.2 billion in 2012. Three years later, ICE acquired the technology platform Interactive Data Corp. for approximately US$5.2 billion.
ICE purchased a majority stake in the Mortgage Electronic Registration System in 2016 and then purchased the remaining shares in 2018. Last year, ICE acquired Simplifile, a document recording service.
“They are so diverse,” said Voigt, an analyst with Kiefer, Blueett and Woods. “Nothing can take them off the axis. Nothing can make or break this company.”
As it was announced in December that Governor Brian Kemp had appointed Kelly Loeffler to fill the seat of retired U.S. Senator Johnny Isakson until a special election could be held, Recently, ICE has received more attention than usual. Loeffler, who is married to ICE CEO Jeffrey Sprecher, has worked at ICE for about 18 years, where he was the head of investor relations, marketing and communications.
She left the company, but her upcoming election to the Senate has caused her to frequently mention her company association.