As expected, shares of Digital Insight (Nasdaq: DGIN) got off to a solid start when the Internet banking services company went public on Friday. What was somewhat unexpected was the way Digital Insight stock climbed.
The stock opened at 20, five points more than the offering price, and then picked up speed and climbed as high as 36-7/16 before closing at 32-1/8. When all was said and done, the stock had closed up more than 114 percent for the day. It’s rare to see investors who buy into an IPO right when it opens get such a high return in just one day. It will be interesting to see how much profit-taking occurs in this stock this week.