Angie’s List stock jumps on report of possible sale

Angie’s List’s lagging stock soared 19 percent Wednesday, apparently on a report that the company has hired bankers to explore a possible sale.

The Financial Times reported the potential sale, which a company spokeswoman wouldn’t confirm.

Stock in the Indianapolis online consumer review company traded up $1.22 to close at $7.59 a share. Even with the jump, the price is far below the stock’s 52-week high of $21.32.

The Financial Times report said Angie’s List “has held conversations with prospective buyers” and has hired bankers to explore a possible sale or other options. The Financial Times attributed its information to “people familiar with the matter.”

Angie’s List spokeswoman Cheryl Reed said, “We don’t comment on rumors.”

The company went public in late 2011, and its stock peaked at $28 a share in 2013. Based on its current share price, the company is valued at about $460 million.

Angie’s List charges members for access to crowd-sourced reviews of local businesses, including home repair companies and professional services. But it’s had a hard time competing against rivals that don’t charge for reviews.

In August, Angie’s List laid off 97 sales team members. The company has racked up losses in almost every quarter since it went public. Its second-quarter loss this year amounted to $18.4 million.

The company employs about 1,900 people, most of them in Indianapolis, where it has headquarters in a cluster of renovated buildings on the Near Eastside.

Call Star reporter Jeff Swiatek at (317) 444-6483. Follow him on Twitter: @JeffSwiatek.