STFC Stock: The Huge News That Has State Auto Rocketing 200% Today

A low-volume stock is seeing a big trading increase, and an even bigger bloom in stock value. State Auto Financial Corporation (NASDAQ:STFC) is looking down at a merger with a very prominent insurance provider. As a result, STFC stock is up massively.

A Liberty Mutual office in Malaysia.

Source: Faizal Ramli / Shutterstock.com

State Auto is a Columbus, Ohio-based insurance company. It offers real estate and casualty insurance. The company operates on a “super regional” basis, meaning it operates only within the Columbus region.

The company’s stock has remained solidly around the $25-$30 mark for the last few years, until a slight downturn was made drastically worse during the Covid-19 pandemic. In May, the company came forth with its Q1 results, and posted a net income of $3.6 million.

While the numbers may have been less-than-stellar, CEO Mike LaRocco is trying to invigorate investors, saying the company “delivered in the most important way: By taking care of our customers in their time of need. At the same time, we produced results that represented continued progress toward our goal of consistent, sustained profitable growth.”

STFC Stock Posts Huge Growth on Liberty Mutual Merger

Liberty Mutual, the Massachusetts-headquartered insurance magnate, is boosting STFC stock today. The companies are announcing that Liberty Mutual will be acquiring State Auto through merger.

The news is another instance of the company expanding its reach in the small commercial insurance market. Through the acquisition, State Auto policyholders will be made to Liberty Mutual members. The deal makes Liberty Mutual the second largest carrier of independent agencies in the country. Liberty Mutual will gain $2.3 billion in acquisition premium.

The deal won’t to close until next year, but that’s not keeping STFC stock from booming upward today. The announcement has led to over 1 million shares changing hands this morning. This is a huge boost from the daily average volume of just 41,000. The price of STFC stock is over $50 today, a 191% price boom.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/07/stfc-stock-the-huge-news-that-has-state-auto-rocketing-200-today/.

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