They provide professional services to mid-cap companies (accounting, HR, retirement plans, project management). Basically like a smaller PwC/Deloitte but focused on mid-sized businesses.
The stock has been heavily beaten down since Feb 2025, going from an ATH around $86 to \~$25 now.
Why it dropped:
• Acquired Marcum for $2.3B (a larger company than them), which spooked investors due to integration risks and added debt
• AI fears hitting the whole sector
• Mid caps underperforming vs big caps
• Last quarter showed limited growth, partly due to economic uncertainty (clients delaying big projects)
Why I think it’s interesting:
• P/E \~14, forward P/E \~6.7
• The drop seems more sentiment-driven than fundamental
• AI replacing this type of business in the medium term feels unlikely (trust + customization matter a lot here)
• Feels like another case of the market over-rotating into trends and neglecting solid businesses (seen it before with EVs, pharma, etc.)
Not planning to hold forever, just see it as a potential rebound play back to a more reasonable valuation.
Position :
Got 400 shares at 26.20$