Darden Restaurants, Inc. (NYSE: DRI)
Darden Restaurants was off to what seemed to be a rough day in the market today. When the opening bell rang, the stock started on a mad dash toward losses. However, over the past few minutes, we've watched as the stock started to spike. Below, we'll talk about what we're seeing, why, and what we'll be watching for with regard to DRI ahead.
What We're Seeing From DRI
As mentioned above, Darden Restaurants was off to what looked like it was going to be a bad day in the market. At the open, the stock took an immediate dive into the red. However, about an hour into the day, the stock reversed and started working its way back to the breakeven mark. Then, just minutes ago, it started to spike. Currently (11:12), DRI is trading at $71.85 per share after a gain of $0.30 per share (0.42%) thus far today.
Why The Stock Is Spiking Upward
As is nearly always the case, our partners at Trade Ideas were the first to inform us of the run on DRI. When they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it took no time at all to uncover the story. It seems as though the gains are being caused by an announcement that the company has canceled a trade show.
Any time a conference or trade show is canceled, investors tend to get excited. While there are many reasons that something like this can happen, the first thing investors seem to think is acquisition. After all, if the company is considering selling itself, it couldn't do the trade show because it would be in a quiet period. Nonetheless, this could also mean that someone has the sniffles. At the end of the day, all we know is that DRI has canceled a trade show. The reason is still a mystery.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DRI. In particular, we're looking for the reason for the trade show cancellation. While we will not jump to a conclusion, we are excited to see what comes of this. We'll watch the news closely and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]