Shares of Gamestop (GME) were volatile in trading on Tuesday after a rumor circulated that the company was a potential takeover target. GME shares briefly rose higher on the news, but then very quickly sold off and trended sharply lower as the general markets sold off in the middle of comments from FOMC chairman Powell. We’ll keep an eye on the stock going forward, but this rumor clearly appears to have few supporters given the price movement. GME shares closed at 15.57, -3.17% for the session.
Shares of VMware (VMW) received an unexpected positive mention by CNBC on Monday, helping shares to rally for the session. VMW has been the subject of mostly negative commentary from the financial press over the last few weeks due to the potential of a merger between the company and Dell. Morgan Stanley was reported by Business Insider as saying that such a merger would be a “worst case scenario” for VMW shareholders, and Barclays was also quoted as saying the potential merger was an “obvious negative” for VMW shareholders. Nevertheless, upon the positive mention by CNBC VMW shares rallied, only to retreat and then rebound later. VMW shares closed up +1.77% at 128.66. Keep an eye on the stock for further developments.
Shares of Allergan (AGN) were volatile in trading on Friday as rumors circulated that the company was a potential takeover target. AGN has been the subject of such rumors before and is indeed a likely candidate for a takeover bid, but this rumor was not confirmed and thus AGN shares mostly tracked the rest of their sector after a short price rise after the rumor first circulated on newswires. AGN shares closed at 162.09 for the session, up +1.69%.
Chesapeake Energy (CHK) shares soared +21.67% by session close on Thursday after beating EPS and revenue estimates. The stock had sunk over 57% percent in the last year due to low energy prices and large relevative debt load, but the surprisingly strong numbers reported by the company boosted shares tremendously. Keep an eye on the stock as further momentum is likely. CHK closed at 3.20.
Walmart (WMT) shares slumped in trading on Wednesday during a volatile session after the FOMC minutes were released. But WMT shares were mostly pushed lower due to increasing concerns that company is losing ground in online sales to Amazon. In response, the company has proposed some plans to turn the situation around, but for now markets are still bearish on the company’s nearterm outlook. WMT shares closed at 91.52, down -2.75%. Keep an eye on its online sales projections for clues to when shares might bounce back or perhaps continue to slide.
Shares of Clovis Oncology (CLVS) were volatile in trading on Tuesday due to takeover speculation. The rumor helped to propel the stock well above $56 around the middle of the session, but an overall market selloff after than pulled shares lower. CLVS has been the subject of takeover speculation before, and odds favor more M&A action this year due to take reform, so CLVS is a viable candidate. CLVS shares closed down -0.81% at 53.71 for the session. Keep an eye on the stock for further rumors.
Shares of Juniper (JNPR) rose briefly in trading on Friday due to takeover speculation. The stock has been the subject of takeover rumors before, and the recent declines in the equities markets tend to increase speculation of potential takeovers due to currently reduced prices for most equities, but this generally is not a good reason to anticipate increased interest in a buyout, particularly since it would take considerable time for any potential deal to close. Nevertheless, JNPR shares briefly rallied on strong volume on Friday before reversing and settling down -2.08% at 26.35. Keep an eye on the stock however since more rumors are likely to emerge, and the company does appear to be a legitimate takeover target given recent M&A trends.
Shares of T-Mobile (TMUS) rose sharply in trading on Thursday due to a rumor that the company was the potential target of a takeover. This is not the first time TMUS has been the subject of such rumors in recent history, but just as before there is no confirmation that an actual bidder has emerged. Nevertheless, TMUS shares closed up +3.10% to settle at 60.44. Keep an eye on the stock for further developments. It is also worth noting that David Tepper’s hedge fund Appaloosa Management acquired a 3.86 million share position in TMUS in the fourth quarter of 2017.
Shares of Ciena (CIEN) were volatile in trading on Wednesday due to a rumor that the company is a potential takeover target. Options activity was also elevated, with 7.7K calls traded versus 520 puts. Speculation was mostly in the February 23 expiration options. The rumor has not been confirmed however, but there was substantial buzz on social media. CIEN shares closed up +2.34% to settle at 23.20. Keep an eye on the stock for further developments.
Shares of UPS rose sharply in trading on Tuesday due to a rumor that an activist investor is acquiring a position in the company. However, this rumor is unconfirmed. The rumor has resurfaced at least a few times over the last year, but thus far no one has yet confirmed an activist is seeking to steer the company. UPS shares close up +1.19% at 107.58.