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Ariad Pharmaceuticals (ARIA) Jumps on More Buyout Rumors

By  +Follow March 28, 2014 9:43AM
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Shares of small-cap pharma Ariad Pharmaceuticals (ARIA) were trading higher on Friday after rumors were started by British paper The Daily Mail that Jazz Pharmaceuticals (JAZZ) was interested in acquiring the company at $20 a share.

Ariad, already a company with a history of high-volume, volatile trading action has already been the subject of buyout rumors sparked by The Daily Mail, previously seeing shares climb in January after the paper reported that pharma giant Eli Lilly (LLY) was considering purchasing the company.

The article, which ran after the closing bell on Thursday, appears to be the impetus behind the nearly 8 percent gain in shares of Ariad on Friday morning. The stock gapped up 5.8 percent to $8.04 a share at the opening bell and gained from there, touching $8.20 a share at its peak.

However, given The Daily Mail’s previous whiff on a purported buyout, it’s clear that traders are taking this most-recent bit of rumor with a significant grain of salt. Given that the rumors cited a share price of $20, a nearly 165 percent premium on the trading price at Thursday’s closing bell, the relatively modest gain can’t be viewed as a ringing endorsement of the potential deal from Wall Street.

It’s also become par for the course for Ariad, a stock that has proven not to be for the faint-hearted investor over the last six months. The company nosedived on October 9 after the FDA placed a clinical hold on trials for ponatinib, its kinase inhibiting leukemia drug Iclusig, ultimately losing more than 75 percent of its value. In the following months, shares continued to swing wildly up and down on extremely heavy volume. However, looking past the interday volatility, Ariad has been making steady gains over the long term, and the FDA ultimately allowed the company to resume marketing and distributing Iclusig with new warnings about blood clots.

Earlier in the month, two trend lines appeared to converge as a falling resistance line that dated back to early September crossed a rising support level that formed in early November after the initial sell-off on Iclusig’s clinical hold. At first, it appeared as though the resistance level would win out, pushing shares below the support line that had largely been moving with the 20-day SMA.

Of course, the stock then began trading at very close to its 50-day SMA and crossed over the falling resistance line less than two weeks later. It’s currently trading in a relatively narrow corridor at close to $8.10 a share, with both the 20-day and 50-day SMAs very close to each other and shares trading very close to those levels.

Looking at a few other technical factors, the MACD line has very recently passed into positive territory, indicating that the current momentum could have real strength. However, the chart appears to show a stock that’s consolidating and waiting to be driven in one direction or the other by an external factor.

The fact that 9-day, 20-day, and 50-day moving averages are so close, and that current share prices remain close to each of those levels, would seem to point towards traders who aren’t seeing a lot of strong momentum, either bullish or bearish. Since falling off a cliff last year, the stock has rallied from a low of $2.15 to levels just over $8 a share. But throughout this rally, the stock pulled back any time its 14-day RSI hit 70, seeming to indicate many of those trading the stock are reticent of technical indicators.

That doesn’t mean there isn’t action, though. With an average daily volume of 14 million shares, about 7.5 percent of its float, over $110 million worth of Ariad stock is changing hands every day. It seems eminently possible that Ariad is poised to breakout in the relatively near future, it’s just unclear which direction that will be in.

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for ARIA
John Smith
4 Mar 15 08:14:49
$ARIA surging on HUGE VOLUME! Buyout rumors???? #cnbc #news #biotech #Pharmaceutical $jnj $pfe $gsk $mrk $azn
Alexander Morris
4 Mar 15 08:13:17
$ARIA: At 1DyHIGH=8.03, hits:3, ch:+1.0%, 4NewHi+:BrkPLo[+4.7%], 13:2Accel+, tf:1000111, medFlt:167M, HiPctSht[27%:5d], oPop-[-2.0%]
IH News Desk
4 Mar 15 07:09:26
$CNET Financials Updated Wednesday, March 4, 2015 09:11:10 AM $SCTY $NOC $ARIA $GPRO http://t.co/3PkEajMuc7
PolgarStocks
4 Mar 15 07:04:10
$MCD Stock Price Updated Wednesday, March 4, 2015 09:07:15 AM $ARIA $SMH $INTC $NVAX http://t.co/c6mBMOgGEg
vivarod
4 Mar 15 06:46:32
@laurenholmesNYC $FNMA, $FMCC , $CZR,@FNMA , $ARIA,
Irma Doucet
4 Mar 15 06:33:26
$ARIA Early Briefing on Biotech Industry Stocks -- ARIAD Pharma, Array BioPharma ... http://t.co/7UhoZOlxUV
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4 Mar 15 06:10:24
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Lucretia
4 Mar 15 05:30:57
$ARIA Early Briefing on Biotech Industry Stocks -- ARIAD Pharma, Array BioPharma ... http://t.co/E6Po35ybbh
PolgarStocks
4 Mar 15 05:03:27
$WFC Investor Opinions Updated Wednesday, March 4, 2015 07:07:15 AM $TWTR $DDD $GT $ARIA http://t.co/irlsmh8ZVl
PolgarStocks
4 Mar 15 05:03:21
$CVX Financials Updated Wednesday, March 4, 2015 07:07:15 AM $AXP $ARIA $HON $CTIX http://t.co/SWU79Ofgeo
Langan Stocks
4 Mar 15 04:04:43
$QCOM News Updated Wednesday, March 4, 2015 06:03:19 AM $ELTP $SIRI $JNK $ARIA http://t.co/T1jMqQKduN
IH News Desk
4 Mar 15 04:03:36
$SLV Company Info Updated Wednesday, March 4, 2015 06:11:10 AM $ARIA $XLY $OREX $XLB http://t.co/yqagl1C8ha
IH News Desk
4 Mar 15 04:03:27
$ARIA Stock Message Board Updated Wednesday, March 4, 2015 06:11:10 AM $HD $MO $CELG $HPQ http://t.co/FPwUMeBpB1
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4 Mar 15 03:07:49
$SVXY Opinions Updated Wednesday, March 4, 2015 05:59:23 AM $LL $ARIA $BAC $SVXY http://t.co/MGBb0BkFXq
Langan Stocks
4 Mar 15 03:03:45
$RAX Last Price Updated Wednesday, March 4, 2015 05:03:20 AM $SMH $ARIA $GGAL $ESI http://t.co/IPpANLtoiQ
Charles G. Koonitz
4 Mar 15 02:46:57
Daily Watchlist $KBIO $DAKP $ARCP $ARIA $PAL http://t.co/eZJ6VhioBm
Rosner Stocks
4 Mar 15 02:06:22
$VNQ Recent News Updated Wednesday, March 4, 2015 04:59:24 AM $COH $ARIA $S $GLD http://t.co/9UHQT9EnUZ
IH News Desk
4 Mar 15 02:00:42
$OREX Recent News Updated Wednesday, March 4, 2015 04:11:14 AM $ARIA $BABA $PFE $CAPN http://t.co/rywk8crKrF
SmallCaps
4 Mar 15 01:58:41
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strategynode
4 Mar 15 00:06:04
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IH News Desk
3 Mar 15 21:55:50
$TVIX Stock Message Board Updated Wednesday, March 4, 2015 00:11:27 AM $ARIA $NBIX $JNK $FXI http://t.co/ocLhmiqW0e
IH News Desk
3 Mar 15 21:55:49
$HYG Percent Change Updated Wednesday, March 4, 2015 00:11:27 AM $JCP $V $ARIA $AMAT http://t.co/doshyei1PJ
PolgarStocks
3 Mar 15 21:55:38
$GPRO Stock Price Updated Wednesday, March 4, 2015 00:07:30 AM $ARIA $HPQ $GE $GM http://t.co/nfUCZxquNA
lookn4wins
3 Mar 15 21:51:09
ARIA -1.00% Stock Charts $ARIA Ariad Pharmaceuticals Inc. (NASDAQ) Any opinions on ARIA? Please reply to this http://t.co/1hWhMPd1or
J. D.
3 Mar 15 20:38:07
@The_Real_Fly $ARIA if they finally get it together
PolgarStocks
3 Mar 15 18:54:13
$ARIA Filings Updated Tuesday, March 3, 2015 9:07:33 PM $OIH $EC $KO $EWJ http://t.co/n4wXjUrtbN
Rosner Stocks
3 Mar 15 17:57:08
$JNK Opinions Updated Tuesday, March 3, 2015 8:43:32 PM $XLE $ARIA $BBRY $MU http://t.co/bQeaQJ3d3i
Langan Stocks
3 Mar 15 17:55:11
$ARIA Short Sales Updated Tuesday, March 3, 2015 8:47:26 PM $HON $COP $BIDU $BORN http://t.co/UorahOOt25
Langan Stocks
3 Mar 15 17:55:10
$GDP News Updated Tuesday, March 3, 2015 8:47:26 PM $ARIA $NOC $XLP $NBG http://t.co/aaGpeshpG3
Sam
3 Mar 15 17:07:11
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Rosner Stocks
3 Mar 15 16:55:39
$ARIA Reviews Updated Tuesday, March 3, 2015 6:59:25 PM $NEM $UCO $AMRN $SLV http://t.co/MqOCh2QlCa
IH News Desk
3 Mar 15 16:52:40
$ARIA Short Sales Updated Tuesday, March 3, 2015 7:11:13 PM $PBR $DXJ $LL $AMZN http://t.co/6RGOmoQcki
Katsu
3 Mar 15 16:37:19
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Sourcingstocks.com
3 Mar 15 16:23:46
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Chasing Stars
3 Mar 15 16:13:53
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3 Mar 15 14:49:44
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3 Mar 15 14:29:34
RT @adamfeuerstein: . @shitpebbssays $ARNA $AMRN $ARIA $MNKD - Same script, same mistakes. People let emotion cloud their investment decisi…
Drew Hathaway
3 Mar 15 14:28:18
RT @adamfeuerstein: . @shitpebbssays $ARNA $AMRN $ARIA $MNKD - Same script, same mistakes. People let emotion cloud their investment decisi…
Jean-François Musy
3 Mar 15 14:24:28
RT jimcramer "RT adamfeuerstein: . shitpebbssays $ARNA $AMRN $ARIA $MNKD - Same script, same mistakes. People let emotion cloud their inves…
Jim Cramer
3 Mar 15 14:23:46
RT @adamfeuerstein: . @shitpebbssays $ARNA $AMRN $ARIA $MNKD - Same script, same mistakes. People let emotion cloud their investment decisi…
Stockaholics
3 Mar 15 14:13:49
Our Stock Alerts Have Gained Over 400% In The Past 5 Weeks! Huge News: http://t.co/knvfKjggSa $FASC $ARIA $TUCN
Adam Feuerstein
3 Mar 15 13:50:44
. @shitpebbssays $ARNA $AMRN $ARIA $MNKD - Same script, same mistakes. People let emotion cloud their investment decisions. Happens often.
Investors Hangout
3 Mar 15 13:32:27
$ARIA Market Cap Click Here: http://t.co/PqoSD84Yi2 Also See: $BAC $FXF $MYEC $UWTI ~
dailystockplays.com
3 Mar 15 13:19:37
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Russell Barbour
3 Mar 15 13:02:15
51% profit Super win! $CRMD momentum trade: http://t.co/qM5oWhbLjM $ARIA $GREK $CYBR $MBLY $SPPI $NDLS $PANW $HACK
Chayton Falke
3 Mar 15 12:40:08
#Russell2000 #recent #market #exit #2: Sold $ARIA long for a 25.27% #gain in 16 days. #ARIA #forex #trading #stocks
Raymond Mooney
3 Mar 15 11:19:32
Losing patience with $ARIA
Extreme Stocks
3 Mar 15 10:07:32
lookn4wins: ARIA -1.25% Stock Charts $ARIA Ariad http://t.co/oxj7ZOVbnY
lookn4wins
3 Mar 15 09:53:52
ARIA -1.25% Stock Charts $ARIA Ariad Pharmaceuticals Inc. (NASDAQ) Any opinions on ARIA? Please reply to this http://t.co/LpHlBfsM1O
Market Int Center
3 Mar 15 09:41:32
Ariad Pharmaceuticals $ARIA Trading Near $7.65 Support Level ( http://t.co/umt9adv8PX )
				
				
By  +Follow March 28, 2014 9:43AM
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