Michael Kors Holdings Ltd (NYSE: KORS) is having an incredibly strong day in the market today, and the spike is only growing larger. Ultimately, the gains are being caused by a rumor, which we’ll get to later. Nonetheless, as soon as the stock started spiking, our partners at Trade Ideas alerted us to the trend. At the moment (10:45), KORS is trading at $38.39 per share after a gain of $0.92 per share (2.46%) thus far today.
KORS Gains On Takeover Rumors
As mentioned above, Michael Kors is having an incredible day in the market today following a rumor that surfaced on social media. The rumor is that the company will soon be acquired. While the rumor doesn’t suggest who the buyer is, it does suggest that the company will be taken over at a price of $53 per share in an all-cash transaction.
It’s important to keep in mind that we see these types of rumors all the time in the market, and in most cases, they prove to be invalid. It doesn’t look like this one is going to happen. Considering that the rumor started on social media and no reputable source is associated with it, chances are that this one is false. So, if you’re going to trade on the news, trade with caution.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on KORS. In particular, we’re interested to see if there is any validity to the rumor mentioned above. While we don’t think there is, anything can happen in the market. We’ll continue to follow the story closely and bring the news to you as it breaks!
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[Image Courtesy of Wikimedia]