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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
Obee1CanoBee
1 Sep 14 05:54:47
$ARIA Gleevec is now the "Dirty Drug"! ....eh AF? http://t.co/xf33XSLABb @adamfeuerstein
Market Monitor
1 Sep 14 04:04:32
$ARIA: ARIAD Reports Second Quarter 2014 Financial Results and Development Progress http://t.co/CUOxiiKO3y http://t.co/NRC2AjQphw
iHangout
1 Sep 14 02:39:54
http://t.co/l4qmOlz0qf Stock_Tracker: Stock DD Board: Ariad Pharmaceuticals (ARIA) 6.22 $ARIA Ariad http://t.co/ovDxsecVrj
Stock News Guru
1 Sep 14 02:04:28
$ARIA: Ariad Pharmaceuticals, Inc.(NASDAQ:ARIA) Treads Strong On Iclusig http://t.co/jolSUPQLoJ http://t.co/aSO0ta3Q9y
Stock News Headlines
31 Aug 14 20:04:31
$ARIA: Will GW Pharmaceuticals (GWPH) Miss this Earnings Season? http://t.co/LSvqxvclHR http://t.co/4D9qjfoRjm
Market Headlines
31 Aug 14 19:04:28
$ARIA: ARIAD PHARMACEUTICALS INC Files SEC form 8-K, Other Events http://t.co/3ieEBerbu6 http://t.co/OOelLZienk
Financial Updates
31 Aug 14 14:04:31
$ARIA: Insider Buying: Ariad Pharmaceuticals Director Alexander J. Denner Buys ... http://t.co/hOinfnMne1 http://t.co/EBUOP1phVQ
Pharma 4 Life
31 Aug 14 13:09:45
$ARIA HUGE opportunity for ponatinib in Japan! Novartis failed to report imatinib serious side effects, fatality http://t.co/t4CD98i52A"
Macroaxis
31 Aug 14 10:03:10
$ARIA Went up to over 4% as of 8/26/14 8:04 pm. Ariad Pharmaceuticals Scheduled to Post Earnings on Wednesday http://t.co/gaE0yBg3EP
Eleazar J. Lua
31 Aug 14 08:42:44
$JRJC $DGLY $ARIA $CPRX $KNSC is it tuesday yet. LOL.
Stock Headlines
31 Aug 14 08:04:29
$ARIA: Why Ariad Pharmaceuticals (ARIA) Stock Is Down Today http://t.co/MwXGG9GTdX http://t.co/zMoEwzR3dq
Stocks in News
31 Aug 14 04:04:34
$ARIA: ARIAD PHARMACEUTICALS INC Files SEC form 8-K, Other Events http://t.co/TJVIyV8Epi http://t.co/tLkfUUQWYd
Financial Updates
31 Aug 14 02:04:30
$ARIA: Will GW Pharmaceuticals (GWPH) Miss this Earnings Season? http://t.co/OClJGhLQhX http://t.co/M8mGFmGoWv
Market News
30 Aug 14 21:04:27
$ARIA: Ariad shrinks size of footprint in Kendall Sq. http://t.co/Of5S3VD1HH http://t.co/vGw9UjoD40
Market Updater
30 Aug 14 18:04:32
$ARIA: Q2 2014 ARIAD Pharmaceuticals, Inc. Earnings Release - Before Market Open http://t.co/MrZ9ONQLd5 http://t.co/43SG6CjnSz
Stock Updates
30 Aug 14 15:04:30
$ARIA: Why Ariad Pharmaceuticals (ARIA) Stock Is Down Today http://t.co/1f3Kr883sm http://t.co/szlh85wkJs
TipRanks
30 Aug 14 14:03:30
Top Expert Consensus for $ARIA is Hold https://t.co/JXLLIauf5T
Market Compass
30 Aug 14 13:04:36
$ARIA: ARIAD PHARMACEUTICALS INC Financials http://t.co/UIHHJ74ti2 http://t.co/loDRL1vIgi
Business News Watch
30 Aug 14 12:04:29
$ARIA: ARIAD to Webcast Conference Call on Second Quarter 2014 Financial Results http://t.co/Sat8Qx4jmw http://t.co/oalPwkZata
Stocks in News
30 Aug 14 10:04:31
$ARIA: Nasdaq stocks posting largest percentage increases http://t.co/206PY1sw76 http://t.co/xaiEW8N14Q
lookn4wins
30 Aug 14 10:03:08
$T Current Price $T Most recent stock chart and technical analysis. $ARIA $UVXY $RPG $BLK $PAWS $XLU http://st http://t.co/EAMgCmROk7
Investors Hangout
30 Aug 14 09:33:08
danrocks: $ARIA Getting Interesting $JRJC $BLK $IYT $RSH http://t.co/HIZkb0NQTO
Investors Hangout
30 Aug 14 09:33:08
danrocks: $ARIA Getting Interesting $JRJC $BLK $IYT $RSH http://t.co/2de96diAT7
danrocks
30 Aug 14 09:19:41
$ARIA Getting Interesting $JRJC $BLK $IYT $RSH $PONAX http://t.co/jKQdq5Hk9P
lookn4wins
30 Aug 14 09:16:20
$GDXJ Volume $GDXJ Most recent stock chart and technical analysis. $DUK $MA $AAPL $CONN $ARIA $TBF http://stoc http://t.co/agyFKKlJ0X
Wall Street Monitor
30 Aug 14 09:04:30
$ARIA: Should You Sell Ariad Pharmaceuticals (ARIA) Before Earnings? http://t.co/TgoVXbENLe http://t.co/YdVMzybYvo
Investors Hangout
30 Aug 14 08:31:10
lookn4wins: $ARIA 50 Simple Moving Average $ARIA Most recent http://t.co/4bYcEsg5iL
Investors Hangout
30 Aug 14 08:31:10
lookn4wins: $ARIA 50 Simple Moving Average $ARIA Most recent http://t.co/1TWJXb7A6g
iHangout
30 Aug 14 08:10:43
http://t.co/Vv1sYDyeQn lookn4wins: The Hunt for the Next 10 Bagger: $ARIA 50 Simple Moving Average $ARIA Most... http://t.co/wGjqQt8Uw9
lookn4wins
30 Aug 14 08:09:26
$ARIA 50 Simple Moving Average $ARIA Most recent stock chart and technical analysis. $DUST $AAPL $IYT $CONN $U http://t.co/PYjCna5gVO
Market News
30 Aug 14 07:04:27
$ARIA: Ariad Pharmaceuticals (ARIA) Worth Watching: Stock Gains 15.3% http://t.co/JI3wdgFj0H http://t.co/YelcxdQoE7
Market Updates
30 Aug 14 06:04:36
$ARIA: Nasdaq stocks posting largest percentage increases http://t.co/35CDuDEmnK http://t.co/6hufphkxlS
Biz Headlines
30 Aug 14 05:04:35
$ARIA: 4 Stocks' Great Run: Ariad Pharmaceuticals, Inc. (ARIA), Petroleo Brasileiro ... http://t.co/iJ1Wd96a6l http://t.co/jClVNgdMB1
Wall Street Monitor
30 Aug 14 04:04:30
$ARIA: Q2 2014 ARIAD Pharmaceuticals, Inc. Earnings Release - Before Market Open http://t.co/hYIVMFcV1B http://t.co/dyz69DpKBs
Stock Market Monitor
30 Aug 14 03:04:33
$ARIA: Why Ariad Pharmaceuticals (ARIA) Stock Is Down Today http://t.co/DdXrZvor2l http://t.co/JpYXsIZUll
Business News
30 Aug 14 02:04:30
$ARIA: Ariad Pharmaceuticals, Inc. (ARIA): Healthcare-focused Sarissa Capital Inches ... http://t.co/XbewNgv05H http://t.co/OGaxEf8FoA
Market Updater
29 Aug 14 20:04:30
$ARIA: Why Ariad Pharmaceuticals (ARIA) Stock Is Down Today http://t.co/wWPByHM2WR http://t.co/5cZKe57WCu
Stock Forums
29 Aug 14 19:53:37
$VTI E.P.S. http://t.co/JTZVUSAGD5 Also See: $ARIA $ADRE $XLI $BIDU ~
Stock Forums
29 Aug 14 18:22:23
$TZA Financials http://t.co/iktGwQTaA1 Also See: $NEM $IBB $DBA $ARIA ~
PolgarStocks
29 Aug 14 18:10:54
$TWTR Shares http://t.co/RXAqOBqeiP Also See: $EEM $DUST $NKY $ARIA ~
Investors Hangout
29 Aug 14 17:36:03
$TRUE Ideas http://t.co/xohGslHmRh Also See: $ARIA $S $JCP $V ~
Stock Headlines
29 Aug 14 17:04:27
$ARIA: Ariad Pharmaceuticals, Inc. (ARIA) Q2 Earnings Preview: It's All about the ... http://t.co/5dnu8MIKgI http://t.co/qwxiyw8Cah
Chasing Stars
29 Aug 14 16:24:48
$SWKS Bid Size http://t.co/ndsrWAVVD9 Also See: $ARIA $VXX $XRT $TZA ~
Investors Hangout
29 Aug 14 16:06:40
$SWKS 52Wk High http://t.co/925dfoaWRm Also See: $LOCO $GS $CELG $ARIA ~
Stock Signaling
29 Aug 14 16:01:10
After Hours Price Advances: $KBH $S $PGH $MEMP $INVN $CDE $PXD $ARIA $RGEN $PGNX $SCI $ARNA $SWIR $APH $JNS http://t.co/Vtx6dLy0Nw #analyst
Investors Hangout
29 Aug 14 15:58:56
$SSYS Company Info http://t.co/eiL7FaUa5Z Also See: $TWTR $EPI $ARIA $PLKD ~
OTPicks.com
29 Aug 14 15:55:56
http://t.co/hjgLwIcNgz DennyT: EBAY Filings and Disclosure $EBAY $ARIA $CTIC: DennyT http://t.co/PzRGq4aT4E http://t.co/hjgLwIcNgz
OTPicks.com
29 Aug 14 15:55:54
http://t.co/QkCFZ8H3V8 DennyT: EBAY Filings and Disclosure $EBAY $ARIA $CTIC: DennyT http://t.co/c5sIVZlqPl http://t.co/QkCFZ8H3V8
Chasing Stars
29 Aug 14 15:42:21
$SLV P/E Ratio http://t.co/0XrgX4qMC6 Also See: $AAPL $THI.TO $ARIA $VXX ~
Chasing Stars
29 Aug 14 15:34:09
$SLB Exchange http://t.co/V6JfKlcOWO Also See: $UGAZ $TD.TO $PRKR $ARIA ~
				
				
By  +Follow March 28, 2014 9:43AM
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