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We recently published a list of 10 Micro-, Small-Cap Firms Dominate Thursday’s Gains. In this article, we are going to take a look at where ProAssurance Corp. (NYSE:PRA) stands against other micro-, small-cap firms that dominate Thursday’s gains.
The stock market edged lower on Thursday, erasing gains from the previous trading day that was buoyed by the Federal Reserve’s decision to keep rates unchanged.
The tech-heavy Nasdaq decreased by 0.33 percent, the S&P 500 declined by 0.22 percent, and the Dow Jones dipped by 0.03 percent.
On Thursday, investors immediately booked profits following the lack of fresh catalysts to further boost buying appetite.
However, 10 companies under the micro- to small-cap sectors noticeably defied market pessimism, having surged by double to triple digits. In this article, we have identified Thursday’s 10 best performers and detailed the reasons behind their gains.
We classify micro-cap companies as those between $50 million and $300 million in market capitalization, while small-cap firms are those with $300 million and $2 billion in market capitalization.
A business executive in the company office, confidently leading the team.
ProAssurance Corp. (NYSE:PRA)
ProAssurance saw its share prices spike by 48.13 percent to end at $23.02 apiece as investors cheered news that it is set to be acquired by The Doctors Company for $1.3 billion.
In a statement, The Doctors Company said that it entered into a definitive agreement to acquire PRA.
Shareholders of PRA will expect to receive $25 per share representing an approximately 60 percent upside from its closing price on March 18. The transaction will be paid in cash.
Upon completion, the two entities will boast assets of roughly $12 billion.
“We are excited to further our mission to advance, protect, and reward the practice of good medicine to an even greater number of healthcare providers across the nation,” said The Doctors Company Chairman and CEO Richard Anderson. “The addition of ProAssurance to The Doctors Company significantly enhances our ability to serve healthcare professionals now and well into the future.”
For his part, PRA President and CEO Ned Rand said: “This transaction will deliver significant value to our shareholders. Both ProAssurance and The Doctors Company were founded by physicians in response to the medical liability crisis of the 1970s. Both companies have grown over the years by bringing together other physician-founded companies.”
Overall, PRA ranks 5th on our list of micro-, small-cap firms that dominate Thursday’s gains. While we acknowledge the potential of PRA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as PRA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.