Restoration Hardware Holdings, Inc common stock (NYSE: RH)
Restoration Hardware is having a relatively strong day in the market today. At the opening bell, the stock was trading slightly in the green. However, as the day progressed, we started to see more and more movement upward. Throughout the afternoon, the stock calmed a bit before minutes ago when it started to spike. Below, we’ll talk about what we’re seeing from RH, why, and what we’ll be watching for ahead.
What We’re Seeing From RH
As mentioned above, Restoration Hardware is having an incredibly strong day in the market today. At the opening bell, the stock was already trading green. From there, it climbed through most of the morning before hitting its peak around 11:00. Since then, the stock has calmed a bit. That is, until minutes ago when it started to spike yet again. At the moment (2:00), RH is trading at $33.37 per share after a gain of $0.98 per share or 3.03% thus far today.
Why The Stock Is Climbing
As is usually the case, our partners at Trade Ideas were the first to inform us of the gains on RH. As soon as we received the alert, the CNA Finance team started working to see exactly why the stock was making a run for the top. It didn’t take long to dig up the story. While the company hasn’t released any fundamental news, we are seeing a rumor that’s likely the cause of the excitement.
At the moment, there’s a rumor surfacing across social media that Restoration Hardware may soon be acquired. According to the rumor Williams-Sonoma, Inc. (NYSE: WSM) will likely buy the company. Also Deutsche Bank has weighed in saying that the buyout could fetch a 30% premium, bringing the value of the acquisition to between $43 and $44 per share.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on RH. In particular, we’re interested in learning whether or not there is any validity to these rumors. Of course, if RH is purchased at a 30% premium, incredible value would be returned to shareholders. Nonetheless, we’ll be watching the news closely and we will continue to bring it to you as it breaks!
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[Image Courtesy of Flickr]