Investing

16 Companies With IPOs in 1996: Best and Worst Performers

Trey Thoelcke

Published: December 15, 2023 11:08 am

The year 1996 was a record one for initial public offerings (IPOs). More than 800 firms went public, raising over $50 billion. Among the notable IPOs of 1996 were those of venerable retailer Abercrombie & Fitch Co. (NYSE: ANF), German communications giant Deutsche Telekom and several tech companies.

The year was a good one for the stock market overall as well. The bull run that began early in 1995 continued, and it would last until the dot-com crash in 2000. The U.S. economy expanded at a moderate rate in 1996 for the fifth year in a row. Inflation remained tame, and the unemployment rate and poverty were falling, while homeownership headed for a new high. The S&P 500 ended the year at 740.74, a 20.26% gain for the year. The Dow Jones industrials closed the year at 6,448.27, up 26.01%. The Nasdaq’s close was at 1,291.03, which was 22.7% higher.

The following companies all had IPOs in 1996 and are still public. We have ranked them by how well the stocks have performed since then (as of the close on December 11 and split-adjusted).

Century Aluminum

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• Company: Century Aluminum Co. (NASDAQ: CENX)
• IPO date: March 28
• IPO price: $13
• Post-IPO performance: −40.2%

Shares of this Chicago-based aluminum producer initially fell after the IPO but ended 1996 more than 26% higher. They are up almost 23% since posting strong quarterly results last month but have run well past the consensus price target of $7.33. Note that the company recently finalized a five-year collective bargaining agreement with the United Steelworkers union.

TTEC

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• Company: TTEC Holdings Inc. (NASDAQ: TTEC)
• IPO date: July 31
• IPO price: $14.50
• Post-IPO performance: −22.4%

This Colorado-based IT services provider has been recognized as one of the world’s top companies for women, as well as among the best for career growth. Shares popped almost 10% initially and ended 1996 more than 54% higher. However, so far this year, they have retreated almost 54%, hitting a 52-week low of $15.27 in the wake of its most recent earnings report. The Nasdaq is up more than 37% year to date.

Nu Skin Enterprises

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• Company: Nu Skin Enterprises Inc. (NYSE: NUS)
• IPO date: November 27
• IPO price: about $30
• Post-IPO performance: 38.9%

The IPO raised almost $99 million for the Utah-based beauty and wellness products provider. However, the stock retreated more than 32% over the next year. It hit a high near $140 a share in 2014. The share price is up more than 7% since a disappointing third-quarter report, but Nu Skin opened its new manufacturing facility in China since then. The $23 consensus price target suggests there may be 23% or so more upside.

Guess

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• Company: Guess Inc. (NYSE: GES)
• IPO date: August 8
• IPO price: about $9
• Post-IPO performance: 164.1%

The stock struggled after the IPO and kept struggling until 2005. It reached an all-time high share price above $57 about two and a half years later. In the past five years, shares have risen about 5%, while the S&P 500 is up about 78% in that time. Guess posted mixed results recently and trimmed its guidance. And co-founder Maurice Marciano retired earlier in the fall.

Viasat

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• Company: Viasat Inc. (NASDAQ: VSAT)
• IPO date: December 3
• IPO price: about $4.50
• Post-IPO performance: 518.8%

The IPO raised around $20 million for this California-based communications company. Shares searched for direction in the days after the IPO but went on to reach a high above $90 before the pandemic. Since hitting a 52-week low of $15.02 this past October, the stock is up more than 52%. The $37.14 consensus price target indicates about 56% upside potential. Note that the company recently announced a partnership with Airbus to provide secure aircraft connectivity.

Abercrombie & Fitch

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• Company: Abercrombie & Fitch Co. (NYSE: ANF)
• IPO date: September 26
• IPO price: $16
• Post-IPO performance: 566.4%

The S&P 500 has had about the same gain in that time. Despite a pop of almost 10% after the IPO, Abercrombie shares ended 1996 in the red by more than 28%. The Ohio-based apparel retailer’s stock is now trading not far off an all-time high, after climbing more than 138% in the past six months. Its strong third-quarter results were seen by some as a sign of a successful turnaround.

Pegasystems

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• Company: Pegasystems Inc. (NASDAQ: PEGA)
• IPO date: July 18
• IPO price: about $6
• Post-IPO performance: 745.2%

Back in October, this enterprise software provider posted strong third-quarter results with record cash flow. The stock is more than 33% higher since then but well off its all-time high of more than $147 during its pandemic rally. Shares started strong, ending 1996 having more than doubled. Four of the five analysts who currently follow the stock recommend buying its shares.

Hub Group

Cargo containers (CC BY 2.0) by Roy Luck

• Company: Hub Group Inc. (NYSE: HUBG)
• IPO date: March 13
• IPO price: about $4
• Post-IPO performance: 1,798.2%

This Illinois-based transportation and logistics company watched its shares pull back after going public, only to jump 20% or so a week later. They hit an all-time high of $104.67 earlier this year. The stock is up around 15% since a soft third-quarter earnings report, while the Dow Jones industrials have gained 11% or so in that time. Most analysts who follow the stock recommend holding shares for now.

Stericycle

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• Company: Stericycle Inc. (NASDAQ: SRCL)
• IPO date: August 23
• IPO price: about $2
• Recent price: 1,920.9%

Illinois-based medical waste management services provider was recently recognized as a top green company and one of the best for women to work for. After going public, the stock trended downward and ended 1996 about 30% lower. Then they headed in the right direction until the pandemic, retreating again since. Year to date, they are down less than 4%, and the consensus price target of $52.60 suggests only modest upside for the next 12 months.

Steel Dynamics

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• Company: Steel Dynamics Inc. (NASDAQ: STLD)
• IPO date: November 21
• IPO price: about $4
• Post-IPO performance: 2,074.1%

Third-quarter results for this Indiana-based steel manufacturer were hurt by lower steel prices. Still, the share price is up almost 9% since then, perhaps helped by an announced $1.5 billion share repurchase plan. After the IPO, shares traded in the red for a few weeks before heading higher. The all-time high share price of $136.46 was seen earlier this year. Despite being more than 17% lower since then, the share price is still higher than the consensus price target.

Iron Mountain

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• Company: Iron Mountain Inc. (NYSE: IRM)
• IPO date: January 31
• IPO price: about $3
• Post-IPO performance: 2,173.9%

After a slow start in 1996, shares trended higher. They were last seen trading near an all-time high, which is a year-to-date gain of around 33%. The consensus recommendation is to buy shares, even though the stock has overrun the consensus price target. Note that CEO William Meaney and another executive recently sold shares of this New Hampshire-based storage and information management company.

Lithia Motors

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• Company: Lithia Motors Inc. (NYSE: LAD)
• IPO date: December 18
• IPO price: $11
• Post-IPO performance: 2,302.2%

The IPO for this auto retailer raised $31 million. The stock surged during the pandemic, when a shortage of inventory boosted car prices. The all-time high was above $406, and shares are down about 32% since then, in part due to a mixed third-quarter report. Analysts on average recommend buying shares, and the stock is a top pick of billionaire investor David Abrams.

FTI Consulting

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Company: FTI Consulting Inc. (NYSE: FCN)
IPO date: July 8
IPO price: $9
Post-IPO performance: 4,290.5%

This IPO raised about $11 million for the Houston-based energy services company. The stock didn’t pick up much momentum for a few years. Then really took off in 2018, hitting an all-time high of $232.15 earlier this month. Better-than-expected third-quarter results helped it get there, and FTI announced it would sell its measurement solutions business. The consensus price target doesn’t suggest much upside potential, not until analysts revise their targets.

Check Point Software Technologies

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• Company: Check Point Software Technologies Ltd. (NASDAQ: CHKP)
• IPO date: June 28
• IPO price: $14
• Post-IPO performance: 3,575.8%

Israeli IT security firm raised $67 million with its initial offering of public shares. Most of its gain has come since the beginning of 2003, when shares changed hands for about $16 apiece. Shares were last seen trading near an all-time high shy of $150. That is up more than 18% year to date, though the Nasdaq is more than 38% higher in that time. The company posted strong earnings for its most recent quarter, though billings were soft.

Ansys

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• Company: Ansys Inc. (NASDAQ: ANSS)
• IPO date: June 20
• IPO price: $13
• Post-IPO performance: 9,467.1%

The IPO garnered this engineering software company about $46 million. The chart for this one shows shares marching steadily higher until about 2006. The stock is down more than 26% in the past two years. Note that Ansys remains a serial acquirer of other companies. In addition, Newsweek just named it one of America’s most responsible companies.

FactSet Research Systems

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• Company: FactSet Research Systems Inc. (NYSE: FDS)
• IPO date: June 28
• IPO price: about $4
• Post-IPO performance: 10,005.7%

This is the best performer of the IPOs of 1996. Note that insiders at this Connecticut-based financial information provider, including CEO Frederick Snow, have been selling shares. The share price is within about 5% of the all-time high near $495 seen in 2021. Year to date, the stock is up almost 12%, which puts it just above the consensus price target. Analysts have a consensus rating on the shares of Hold and have for at least three months.