National-Oilwell Varco (NOV) Stock: Gaining Big On Activist Investor Rumors


National-Oilwell Varco, Inc. (NYSE: NOV)

National-Oilwell Varco was off to a relatively strong day in the market today. When the trading session opened, the stock was already trading in the green. From there, we saw some ups and some downs, but the stock maintained itself in the green. And then minutes ago, things got very interesting when the stock started to spike toward the top. Below, we’ll talk about what we’re seeing from NOV, why, and what we’ll be watching for ahead.

What We’re Seeing From NOV

As mentioned above, National-Oilwell Varco was off to a pretty good day in the market early on. The stock started the day in the green, and while there were some down times, the stock never touched the red. Then, minutes ago, things went from good to great as the stock started spiking upward. Currently (10:35), NOV is trading at $39.24 per share after a gain of $1.43 per share (3.78%) thus far today.

Why The Stock Is Spiking

As is usually the case, our partners at Trade Ideas were the first to alert us to the spike on NOV. As soon as they did, the CNA Finance team started working to see what was causing the movement. While there has been no fundamental news released by the company that would lead to such gains, we did find a rumor that we believe is the cause.

At the moment, there’s a rumor surfacing in social media that an activist investor is planning on getting involved in the National-Oilwell Varco. In fact, the rumor suggests that Pershing Square is going to be opening a large position. At the moment, these rumors are unconfirmed. It’s also very interesting when you look at the timing. In fact, the rumor broke about 2 minutes before crude oil inventory data was offered, showing inventories rose by 6.4 million BBLS compared to the 3 million expected. Nonetheless, NOV is climbing on the rumors.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be watching NOV incredibly closely. In particular, we’re interested in learning whether or not Pershing Square will be making a large purchase of the stock ahead and, if so, what their plans are with the company. We’ll be watching the news closely and bringing it to you as it breaks!

Update: Jim Cramer suggests NOV will be acquired by BHI in a Tweet.

Update – We’re hearing down the wire that management at National-Oilwell Varco says they have no information on any activist position. Currently, this is unconfirmed. We’ll continue to follow the story.

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[Image Courtesy of Wikimedia]


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