Kate Spade & Co (NYSE: KATE)
Kate Spade & Co is having an incredibly strong day in the market today, with dramatic gains already appearing early on in the session. After a quick search, we believe that we know why the stock is soaring. Below, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from KATE ahead.
KATE Stock Is Gaining Big
As mentioned above, today’s activity surrounding Kate Spade & Co is anything but normal. Since the opening bell rang, the stock has been running upward, and it looks to be continuing in that direction. Currently (9:56), KATE is trading at $17.63 per share after a gain of $1.01 per share (6.08%) thus far today.
Why We’re Seeing The Gains
As usual, as soon as we noticed that KATE stock was having an abnormally strong day, the CNA Finance team went to work to see if we could dig up the cause for the gains. While there was no fundamental news released that suggests such strong gains are warranted, we did find something in the social space.
At the moment, rumors are circling social media that Kate Spade & Co may be acquired relatively soon. In fact, the rumors are that Coach is looking closely into the company and likely going to make a bid.
What We’ll Be Watching For Ahead
First and foremost, I’d like to remind everyone that what we’re seeing at the moment is the result of a rumor. At the end of the day, there has been no confirmation from KATE or Coach that an acquisition is even being thought of at the moment. Nonetheless, we’ll be keeping a close eye on the story and bringing the news to you as it breaks!
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[Image Courtesy of Flickr]