Devon Energy Corp (NYSE: DVN) is having a relatively strong start to the trading session this morning, and the gains seem to be the result of rumors surrounding the stock. Below, we’ll talk about what we’re seeing from the stock, the rumors that we believe are causing the movement, and what we’ll be watching for with regard to DVN ahead.
What We’re Seeing From DVN
As mentioned above, Devon Energy Corp is having a relatively strong day in the market today. At the open of the day, the stock shot toward the top, and while gains have died down a bit, the stock is still well into the green. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:44), DVN is trading at $40.16 per share after a gain of $0.89 per share (2.27%) thus far today.
DVN Heads Up On Takeover Chatter
When we saw that DVN was spiking higher on the opening bell, the CNA Finance team started to dig to see what was causing the gains. While the company hadn’t released any news directly, we believe that we found the source of the gains. All over message boards, we’re starting to see rumors that Devon Energy Corp will be taken over. However, the rumors are overwhelmingly vague. They only suggest that the company will be taken over, and they don’t offer any clues with regard to who will be taking the company over or at what price they’ve made the offer.
This brings us to an important warning surrounding rumor-based trading. The reality is that rumors happen in the market all the time, and very few of them ever prove to be valid. In fact, rumors are the most common form of market manipulation seen in the United States stock market. With that said, if you plan on trading on these rumors, please be sure to do so with caution.
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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 DVN. In particular, we’re interested in learning if there is any validity to the rumors. While we don’t believe that a takeover will happen due to the vagueness of the rumors themselves and lack of ability to track down a single source, 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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