Depomed was off to a relatively rough start to the trading session today. While the stock did start the day off in the green, it quickly took a dive, heading for the red. Nonetheless, minutes ago, the stock started spiking and it’s now trading in the green again. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to DEPO ahead.
What We’re Seeing From DEPO
As mentioned above, Depomed wasn’t having the best of starts to today’s trading session. While the stock started the day well in the green, it quickly fell into the red. Nonetheless, that changed quickly when the stock started to spike upward minutes ago. Now, it’s back in the green. At the moment (9:52), DEPO is trading at $19.64 per share after a gain of $0.11 per share (0.56%) thus far today.
Why The Stock Is Climbing
As usual, as soon as the CNA Finance team noticed that DEPO was heading for the top, we started to do some digging to see what was causing the movement. It didn’t take long to find the cause here. The stock is climbing as the result of a rumor.
At the moment, the social world is linking to an article on intereconomia.com. In the article, the publication explains that Novartis is interested in acquiring Depomed. While I can understand the correlation between the two, Intereconomia.com is known for rumors, and very few reported there ever come true. So, if I were you, I wouldn’t hang my hat on this one.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DEPO and NVS. While we don’t believe an acquisition is actually on the horizon, we will leave no stone unturned with this one. After all, a NVS acquisition of DEPO could return incredible value to shareholders. Nonetheless, we’ll keep an eye on the news and be sure to update you as it breaks!
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[Image Courtesy of Pixabay]