Hess Corp. (NYSE: HES) is having an interesting start to the trading session this morning. Shortly after the opening bell, the stock spiked for the top. However, no news was released. Below, we’ll talk about why the stock spiked, what we’re seeing from HES, and what we’ll be watching for ahead.
HES Spikes On Takeover Chatter
As mentioned above, Hess is having an interesting start to the trading session this morning. After opening relatively flat, the stock spiked toward the top early on. With no news, many were wondering about the cause for the spike. However, the reason was relatively simple. Rumors broke early this morning that HES would soon be taken over. However, these rumors proved to be overwhelmingly vague. In fact, there is no suggestion with regard to who is interested in taking the company over nor at what price. Nonetheless, with the takeover rumors breaking, investors seem to be excited.
Any time we see rumors like this, it’s important that we let you in on something. The truth is that the rumor surrounding HES isn’t a unique one. Takeover rumors happen all the time. In fact, this is one of the most common forms of market manipulation. Given the fact that the rumor is overwhelmingly vague and the source seems impossible to track down, I wouldn’t hang my hat on a takeover happening any time soon.
What We’re Seeing From The Stock
At the open, there wasn’t much by way of exciting movement surrounding hess. However, shortly after the rumors broke, the stock spiked. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:00), HES is trading at $48.53 per share after a gain of $0.68 per share (1.42%) 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 HES. In particular, we’re interested in learning if there is any validity to the rumors. While we don’t believe that a takeover is going to happen any time soon, anything can happen in the market. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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