Sprouts Farmers Market Inc (NASDAQ: SFM) is having a relatively strong start to the trading session today. The gains seem to be the result of rumors that the company may soon be taken over. Of course, this is exciting investors and leading to gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:44), SFM is trading at $20.04 per share after a gain of $0.27 per share or 1.37% thus far today.
SFM Gains On Takeover Chatter
As mentioned above, Sprouts Farmers Market is having a strong time in the market at the moment after rumors broke that the company may soon be taken over. According to the rumors, Wal-Mart Stores Inc. (NYSE: WMT) is interested in taking the company over. At the moment, there is no insinuation as to at what price the takeover may happen. It’s also important to keep in mind that there has been no confirmation from either side regarding the rumors.
In any case like this, I always make it a point to remind investors that it’s not a good idea to act on rumors. The reality is that rumors in the market are just like any other rumor. They are generally statements that lack validity. In the market, rumors happen quite often, and unfortunately, most of them are false. The SFM rumor is likely the same story. So, if you’re going to act on these rumors, make sure that you act 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 SFM. In particular, we’re interested in following the rumors to see if WMT is interested in taking over the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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