Archer Daniels Midland Company (NYSE: ADM) is having an interesting start to the trading session this morning. After starting slightly in the green, the stock fell to the break even point before making a strong run for the top. While we dug for news from the company, they haven’t released anything just yet. However, we did find a rumor that we believe to be the cause of the gains. Today, we’ll talk about that rumor, how the stock is reacting to the news, and what we’ll be watching for with regard to ADM ahead.
ADM Gains On Takeover Rumors
As mentioned above, Archer Daniels Midland Company is having an interesting start to the trading session. Minutes ago, the stock started to spike for the top with no news released. Nonetheless, after a bit of digging, we started to see rumors all over message boards online. The rumors suggest that the company may be taken over relatively soon. However, they are overwhelmingly vague. The rumors don’t mention who might be interested in the takeover nor at what price.
Any time we see rumors like this, we feel it’s important to warn those who may get involved. The reality is that rumors are nothing new in the market. In fact, they happen all the time, making them one of the most common forms of market manipulation today. In general, market rumors are not based in fact. Instead, they are made up stories designed to cause movement in the market. As a result, if you’re going to make any moves based on the ADM rumor, please be sure to do so with caution!
How The Stock Is Reacting
In general, when takeover rumors break, they lead to excitement, causing gains in the stocks they surround. That’s exactly what we’re seeing from Archer Daniels Midland Company at the moment. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:55), ADM is trading at $40.46 per share after a gain of $0.72 per share or 1.81% 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 ADM. In particular, we’re interested in learning if there is any validity to the rumors that are surfacing today. While we don’t believe that a takeover will actually happen, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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