What Happened?

Shares of outdoor living products manufacturer AZEK Company (NYSE:AZEK) jumped 23.6% in the afternoon session after James Hardie Industries offered to acquire the company (AZEK) in a cash and stock deal worth approx. $9 billion. The acquisition price implied a 26% premium to AZEK's average stock trading over the 30-day period before the deal became public.

The shares closed the day at $48.57, up 17.4% from previous close.

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What The Market Is Telling Us

AZEK’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for AZEK and indicate this news significantly impacted the market’s perception of the business.

AZEK is up 3.1% since the beginning of the year, but at $48.57 per share, it is still trading 11.3% below its 52-week high of $54.76 from December 2024. Investors who bought $1,000 worth of AZEK’s shares at the IPO in June 2020 would now be looking at an investment worth $1,789.

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