Amarin Corporation plc (NASDAQ: AMRN) is trending up in the market today, and for good reaosn. There’s chatter across the market that the company is in talks with a big player about being acquired. Of course, this is moving the needle for the stock. Today, we’ll talk about:
- The buyout rumors;
- what we’re seeing from AMRN stock as a result; and
- what we’ll be watching for ahead.
AMRN Gains On Rumors
As mentioned above, Amarin Corporation is having a great day in the market. However, if you go digging for press releases or SEC filings, your search isn’t going to turn up anything. There has been no news. So, what’s the deal?
Throughout social media, we’re starting to see chatter of a potential buyout of the company. Accoreding to the rumor, Novartis is interested in acquiring AMRN.
The rumor makes sense. The company’s Vascepa treatment is one that many believe comes with some real value. At this stage in the game, Novartis could provide a strong premium while making sure that the acquisition is accretive to their shareholders.
However, it’s also important to keep in mind that there has been no confirmation of the potential talks by either side of the rumor. Rumors are the most common form of market manipulation today. So, if you’re going to make a move on AMRN as a result of the rumor, please do so with caution.
What We’re Seeing From The Stock
Any time we see takeover rumors that stick, the value of the stock that is rumored to be taken over generally rises. It’s the old news moves the market trick.
With rumors suggesting that Amarin is going to be taken over, it comes as no surprise that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:42), AMRN is trading at $18.90 per share after a gain of $1.47 per share or 8.43% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMRN. In particular, we’re interested in following the story surrounding the potential acquisition of the company by Novartis. We’re also watching the company’s work with regard to Vascepa as we believe that there is some real value in the product. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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