TESARO Inc (NASDAQ: TSRO)
TESARO was off to what seemed to be a rough day in the market today. When the opening bell rang, the stock was trading slightly in the green. However, shortly following the bell, we started to see a mad dash toward the bottom, leading to expanding losses throughout the majority of the morning. However, minutes ago, the stock started to spike in a big way. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to TSRO ahead.
What We’re Seeing From TSRO
As mentioned above, TESARO didn’t look like it was going to have a strong day in the market early on today. While the stock was in the green when the trading session opened, it wasn’t able to hold onto the gains for long. When it went into the red, the pace at which the stock was declining only got faster. Nonetheless, minutes ago, it started to spike upward. Currently (11:23), TSRO is trading at $148.23 per share after a gain of $8.23 per share, or 5.88%.
Why The Stock Is Spiking
As is normally the case, as soon as our partners at Trade Ideas sent us the alert that TSRO was climbing, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, we were unable to find any fundamental news released by the company that would lead to such gains. However we were able to find what we believe to be the reason for the gains in the social space.
At the moment, there’s a rumor brewing in social media, and it’s exciting investors. The rumor is that the company is going to be acquired soon. The buyer associated with the rumor is Sanofi. Keep in mind that this is nothing more than a rumor. Neither side has confirmed the possibility of an acquisition. Nonetheless, this is an exciting one and it’s sending the stock skyrocketing.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TSRO. In particular, we’re interested to see if Sanofi will actually be making a bid for the company. If so, this could generate an incredible return to shareholders. We’ll be watching the news closely and bringing it to you as it breaks!
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[Image Courtesy of Wikimedia]