Dunkin Brands Group Inc (NASDAQ: DNKN)
Dunkin Brands looked like it was off to a relatively normal day in the market today. When the opening bell rang, the stock quickly found itself in the green. Since then, we’ve seen relatively flat movement keeping the stock up, but definitely nothing to write home about. Nonetheless, minutes ago, the stock started to soar. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to DNKN ahead.
What We’re Seeing From DNKN
As mentioned above, Dunkin Brands was off to a relatively normal day in the market today. As soon as the opening bell rang, the stock started working its way into the green. Since then, movement has been relatively flat, and while the stock remained in the green, there was nothing exciting happening. That is, until minutes ago, when the stock started making a mad dash for the top. Currently (10:40), DNKN is trading at $55.60 per share after a gain of $2.02 per share (3.77%) thus far today.
Why The Stock Is Climbing
As always, as soon as our partners at Trade Ideas notified us that DNKN was spiking high, the CNA Finance team started digging to see exactly what was causing the movement. While we were unable to uncover any fundamental news that we believe would be enough to cause the spike, we were able to find something interesting in social. It seems as though the stock is climbing as the result of a rumor.
At the moment, there’s a big rumor circling Dunkin Brands all over the social networks. That rumor is that the company is likely to be taken over. Furthermore, rumor has it that the buyer is JAB Holdings. While the acquisition would make sense, there has been no confirmation from either side that an acquisition is actually going to happen.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DNKN. In particular, we’ll be watching to see if there is any validity to this takeover rumor. Nonetheless, most rumors prove to be false, so if you’re trading on this, trade with caution. We’ll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]