Acer Therapeutics Inc (NASDAQ: ACER) is screaming for the top in the premarket hours this morning, but if you’re looking for news from the company that points to a reason from the gains, you’ll be hard-pressed to find any. There has been no press releases or SEC Filings this morning.
Nonetheless, the gains that we’re seeing out of the stock seem to be fueled by takeover rumors. Here’s what’s going on:
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- Takeover Rumors Send Acer Therapeutics Stock Higher
- What Is Acer Therapeutics
- What Analysts Think About ACER Stock
- Final Thoughts
Takeover Rumors Send Acer Therapeutics Stock Higher
As mentioned above, Acer Therapeutics is screaming for the top in the premarket hours this morning, but with no news out, many are wondering why. The gains seem to be the result of rumors.
On message boards and social media across the web, we’re seeing rumors that the company will soon be taken over.
Of course, a takeover would be exciting for shareholders. After all, acquisitions generally happen at a strong premium to the current trading price, resulting in a significant return of value for shareholders.
Nonetheless, it’s important to keep in mind that these rumors are just that, rumors. There has been no confirmation from the company that it’s even in talks to be acquired, and given the fact that rumors take place all the time on Wall Street, it’s important to be cautious if you decide to make a play during this run.
What Is Acer Therapeutics
Acer Therapeutics is a clinical-stage biotechnology company that’s working to develop therapeutic options for patients with rare, life-threatening, and debilitating conditions.
At the moment, the company has five clinical development programs, two of which are in Phase 3, the phase of development that takes place prior to a submission to the FDA and other regulatory authorities.
As such, the company is on the verge of breaking into the commercial stage of business, which bodes well with the rumors that the company will announce an acquisition soon. At the end of the day, at Phase 3, prospective buyers have the data they need to make an educated decision, but without regulatory approval yet, these prospective buyers won’t have to overpay to acquire the company.
Again, the acquisition rumors are just rumors at this point, but they make sense given the current stage of the company.
What Analysts Think About ACER Stock
Analysts aren’t the biggest fans of ACER stock, according to TipRanks. In fact, the company only has two Wall Street Analysts offering up coverage, both of which rate the stock a Hold. There are no Buy or Sell ratings to speak of and neither of the analysts covering the stock has offered up a price target.
All told, Acer Therapeutics is a potentially exciting opportunity. There may be a takeover on the horizon, and even if there’s not, we’re talking about a stock with an ultra-tiny, 12 million share float. So, all the excitement has the potential to send the stock rocketing, regardless of the outcome of the rumors. All told, ACER stock is one to watch closely at the moment.