Transocean Ltd (NYSE: RIG)
Transocean is off to an incredible start to the trading session today. Since the opening bell, the stock has been well in the green and climbing higher. We believe we know what’s causing the gains. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to RIG ahead.
What We’re Seeing From RIG
As mentioned above, Transocean is off to an overwhelmingly strong start in the market today. The stock started the day off well into the green and has been on an upward trends since the opening bell. Now, the stock is spiking even higher. At the moment (10:02), RIG is trading at $11.34 per share after a gain of $0.32 per share (2.95%) thus far today.
Why The Stock Is Spiking
As always, when the CNA Finance team noticed the spike on RIG, we started to see if we could dig up the underlying cause of the movement. In our search, we were unable to find any fundamental news released by the company that would lead to such incredible gains. However, we were able to find a rumor in the social space that’s likely causing the movement.
At the moment, across social media, we’re seeing rumors that Transocean may be acquired. So far, there is no price associated with the rumor, nor word of a solid suitor. Nonetheless, excitement that the company may be acquired is sending the stock skyward.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will keep a close eye on these rumors to see if they actually do evolve into an acquisition. After all, if RIG is acquired, the return of value to shareholders would likely be great. Nonetheless, it is important to keep in mind that the movement is being caused by rumors and the rumors could be debunked, leading to declines. Either way, we’ll be watching the news closely and bringing it to you as it breaks!
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[Image Courtesy of Wikipedia]