AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO) is making a run for the top in the market this morning. However, if you’re looking for press releases or SEC filings that may be the reason for the gains, you may find yourself upset. There’s nothing out there.
Nonetheless, there is a good reason for the movement. Today, we’ll talk about:
- Why AVEO stock is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why AVEO Stock Is Headed Up
As mentioned above, AVEO Pharmaceuticals is having a great day in the market today. However, with no press releases or SEC filings released, many are scratching their heads, looking for a reason for the gains.
After scouring various trader message boards and social channels, we believe that we’ve found the reason for the gains. It seems as though there’s a rumor surfacing that AVEO is currently in talks to be taken over.
Of course, if a takeover were to happen, it would likely happen at a strong premium, leading to a return of value for investors. However, it’s also worth mentioning that takeover rumors are one of the most common forms of market manipulation.
During our search of social media, we saw several messages like:
If the buyout rumor wasn’t true, wouldn’t AVEO issue a press release debunking the rumors?
Sure, that’s a great thought, but that’s not generally how it works. In general, publicly traded companies won’t provide any information surrounding rumors. These tend to be ignored until something of material interest actually comes of them.
So, the idea that the rumor is true based on the fact that AVEO hasn’t debunked it is a false one. While there are reasons that a big player may want to take the company over, and now would be a good time to get a good price, making moves on a rumor is usually a bad move. So, if you’re going to jump in on this one, be sure to do so with caution.
What We’re Seeing From The Stock
While AVEO Pharmaceuticals hasn’t issued any news, the news surrounding the potential buyout of the company seems to be leading to excitement among investors. Of course, if the rumors are true, we can expect to see a strong return of value.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:44), AVEO is trading at $1.06 per share after a gain of $0.24 per share or 29.25% 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 AVEO. In particular, we’re interested in following the story to see if there is any validity to the takeover rumors that are sending the stock up. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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