NuVasive, Inc. (NASDAQ: NUVA) is having an incredibly strong start to the trading session this morning, and for good reason. News surrounding a potential takeover of the comapny is hitting the wire, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The potential takeover;
- what we’re seeing from NVDA stock as a result; and
- what we’ll be watching for ahead.
NUVA Is Climbing On Takeover Chatter
As mentioned above, NuVasive is having an incredibly strong start to the trading session this morning as a result of takeover chatter.
According to various reports, Smith & Nephew just might be considering buying the company. If the chatter is true, the takeover could happen with a price tag as high as $3 billion.
The deal, expected to be a takeover at a price of 2.3 billion pounds or approximately $3 billion. There are a couple of things to keep in mind here.
First and foremost, the news isn’t necessariy news. It’s rumors. At the end of the day, takeover rumors are one of the most common forms of market manipulation. Without confirmation from either side of the coin, making a decision based on a rumor could become a big mistake. Without confirmation the NUVA news is a rumor as it stands now.
Nonetheless, this rumor seems to have at least some validity. After all, the rumor first broke on a highly reputable outlet known as The Financial Times. Moreover, the story has been picked up by Reuters and several other mainstream financial outlets that add further credibility.
While this all looks good, keep in mind that the news is nothing more than a rumor. Sure, an acquisition of NUVA at this valuation would be incredible for investors. However, until confirmation is made, I wouldn’t go betting my bottom dollar on this transaction actually taking place.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. While today’s news is driven by a takeover rumor, investors are excited about the potential opportunity for a takeover to happen at such a strong premium. So, it’s not surprising to see that the stock is headed up. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:08), NUVA is trading at $55.95 per share after a gain of $6.40 per share or 12.92% 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 NUVA. In particular, we’re interested in following the story surrounding the potential acquisition. After all, if it takes place, it would provide investors with a strong return of value. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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