Kate Spade & Co (NYSE: KATE)
Kate Spade was off to a relatively normal day in the market today. When the opening bell rang, the stock was flat. Throughout the day, we’ve seen small ups and downs, but nothing too exciting. That is, until minutes ago, when the stock started to skyrocket. Below, we’ll talk about what we’re seeing from the stock, why, and what we will be watching for with regard to KATE ahead.
What We’re Seeing From KATE
As mentioned above, Kate Spade was having a normal day in the market today. Throughout the trading session, the stock hovered just around the break even point. Sometimes below, sometimes above, but nothing exciting in either direction. Nonetheless, minutes ago, the stock started to spike in a big way. Currently (12:56), KATE is trading at $17.05 per share after a gain of $2.54 per share (17.51%) thus far today.
Why The Stock Is Gaining
Our partners at Trade Ideas were the first to notify us of the big gains on KATE. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it didn’t take long to dig up the story. It seems as though investors are hoping for an acquisition, and for good reason.
Minutes ago, news broke that Kate Spade has hired advisors. The reason for the hire – the company is working to explore a sale. Of course, if a sale happens, investors will likely see a strong return of value. Nonetheless, only time will tell if an acquisition is indeed in the cards for the company.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a very close eye on KATE. In particular, we’ll be watching to see what the hiring of advisors results in. Will there be an acquisition? Only time will tell. We’ll be watching the news closely and bringing it to you as it breaks!
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[Image Courtesy of Flickr]