ACADIA Pharmaceuticals (ACAD) Stock: Gaining Big On Takeover Rumors

ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)

Just minutes ago, ACADIA Pharmaceuticals started spiking in a big way. After a little searching through the grapevine, the CNA Finance team has uncovered a reason for the gains. Here’s what’s happening, why it’s happening, and what we can expect to see next from ACAD.

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What’s Happening With ACAD?

ACADIA Pharmaceuticals was off to a day just like any other day earlier this morning. Normal movement on the stock happened until about 11:35. Then, we started to see tremendous upward movement. At the moment (11:40), ACAD is trading at $24.64 per share after a gain of $0.69 per share (2.88%) after spiking higher and higher for the past 5 minutes.

Why Are The Gains Happening?

It wasn’t hard to find the reason for the gains on ACAD today. The reason ultimately lies in rumor. Currently, there’s quite a bit of chatter on social media surrounding a possible acquisition of the company. According to the rumors, Biogen is interested in acquiring the company. The rumors also suggest that the company will be acquired at a price of $40 per share or more, which represents an incredible premium.

What’s Next?

In the short term, we’re likely to see continued gains on Acadia Pharmaceuticals as nothing seems to get investors more excited than the possibility of an acquisition. However, it is important to remember that any report of a possible acquisition at the moment is fueled by rumors. There is no confirmation on either side that a deal will come to fruition. If that is the case, of course we’ll see gains. However, if the rumor fizzles out with no news of an actual acquisition, we’re likely to see big declines. So, pay close attention to the news.

UPDATE: CNA Finance Chief Strategic Analyst, Kenny Soulstring, has weighed in on ACAD. To read his analysis, click here!

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