Skechers USA Inc (NYSE: SKX) is off to an overwhelmingly strong start to the trading session today, and for good reason. Rumors recently hit the market leading to excitement among investors and pushing the stock toward the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:00), SKX is trading at $25.79 per share after a gain of $0.92 per share (3.70%) thus far today.
SKX Gains On Takeover Chatter
As mentioned above, Skechers USA is having a strong day in the market today as rumors break that the company may be taken over soon. However, at the moment, the rumors are overwhelmingly vague. There’s no insinuation as to who may be interested in the company, nor at what price. After further digging, the rumor seems to be the result of strong call buying at the moment. So, I wouldn’t get my hopes up here, which brings me to my next point.
At the end of the day, this isn’t the first buyout rumor that we’ve seen in the market, and it won’t be the last. In general, these rumors prove to be invalid. In the case of SKX, the vagueness of the rumor suggests that it lacks validity. So, if you’re going to trade on this one, make sure to do so 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 SKX. In particular, we’ll be watching to see if the rumors prove to be true. While we don’t believe this will be the case, 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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