logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Ariad Pharmaceuticals (ARIA) Jumps on More Buyout Rumors

By  +Follow March 28, 2014 9:43AM
Share:
Tickers Mentioned:

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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for ARIA
PolgarStocks
20 Dec 14 01:24:14
$SLV Investor Opinions Updated Saturday, December 20, 2014 04:07:25 AM $UNG $DUST $DIS $ARIA http://t.co/nppxIS5Zct
SmallCaps
20 Dec 14 00:58:04
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/AKjszr3DgF $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Stockaholics
20 Dec 14 00:53:41
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $FASC $ARIA $TUCN
PennyStock Zone
20 Dec 14 00:34:40
'Choose yourself!' book review http://t.co/eI9c5QLAlt $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Maleah
20 Dec 14 00:31:00
http://t.co/xyIhT2pFrh <- Most people I refer to SuperTrades service have bought YEARLY subscriptions. $GPRO $ARIA $BITA $OAS $ARCP
Trader News Daily
20 Dec 14 00:19:49
Wow http://t.co/PeRPkZkWiw just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Adria Ostrander
20 Dec 14 00:16:05
Todays Stocks you should be watching $SATS $ARIA $SYK $YOD #personalfinance http://t.co/V6p3j1bsJm
Dave
19 Dec 14 23:38:54
I didnt know the pro members get the opening bell alerts from http://t.co/qY5MPlJPrU 1 day early. $ARIA $HK $GERN $NIHDQ $AU $SIMH
PennyStock Zone
19 Dec 14 23:27:24
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/37mHH9cdhB $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Langan Stocks
19 Dec 14 23:21:39
$BBRY News Updated Saturday, December 20, 2014 02:03:25 AM $ARIA $RIG $MRK $WMIH http://t.co/1GNssjQIvD
Langan Stocks
19 Dec 14 23:21:38
$ARIA Percent Change Updated Saturday, December 20, 2014 02:03:25 AM $HYG $IBM $IWM $OIL http://t.co/LP2eplLTiJ
PolgarStocks
19 Dec 14 23:21:37
$ISIS Percent Change Updated Saturday, December 20, 2014 02:07:27 AM $UNG $ARIA $DUST $XIV http://t.co/asNceblf5H
Rosner Stocks
19 Dec 14 23:20:07
$VDSI Reviews Updated Saturday, December 20, 2014 01:59:25 AM $COP $WMIH $ARIA $BLTA http://t.co/ZIzPswCP4a
Terisa Moseley
19 Dec 14 22:30:11
Should you buy, sell or hold $HPQ $ITW $ARIA $SSO Click http://t.co/g75IuYilLz
Necole Diaz
19 Dec 14 21:29:36
Are you considering selling $BRK $ARIA $GDI $CI #newsletter http://t.co/1Rn765DXz8
PennyStock Zone
19 Dec 14 20:57:52
'Choose yourself!' book review http://t.co/eI9c5QLAlt $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Stockaholics
19 Dec 14 20:41:04
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $FASC $ARIA $TUCN
pstock805
19 Dec 14 20:35:21
Some BioTechs with high/decent volume to watch: $ARIA $HALO $MACK $ARWR $VVUS $INO $PETX $ADXS
Tempie Ramey
19 Dec 14 20:31:24
Awesome #Stock #Research on $ALSN $SHW $ARIA $USD #Research http://t.co/O105kkH11z
Jonie Gallegos
19 Dec 14 20:30:08
Latest information on #stocks like $FLS $DISH $ARIA $USD #financialnews http://t.co/DmsYVM6Bkp
Shaquita Foy
19 Dec 14 20:26:43
Sick and Tired of losing money on $BAX $LEG $ARIA $IBM #NASDAQ http://t.co/VPFhc7nbLy
iHangout
19 Dec 14 20:09:17
chartguy89: 2014 Trending Stocks: ARIA +9.23% Stock Charts $ARIA Ariad http://t.co/uPRpeS9iRx
Stock Rocket
19 Dec 14 19:52:20
Thanks to the 5 pro traders at http://t.co/5jbX6mNKQv for an amazing week! My win rate was 80%. So sweet. $ARIA $GNBT $CIG $NVAX
PennyStock Zone
19 Dec 14 19:02:56
'Choose yourself!' book review http://t.co/eI9c5QLAlt $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Dakota Financial
19 Dec 14 19:00:17
Insider Buying: Harvey J. M. D. Berger Purchases 25,000 Shares of Ariad Pharmaceuticals Stock $ARIA http://t.co/vcLtId0e3B
Dave
19 Dec 14 18:50:21
Nailed over 200% in gains this week at http://t.co/qY5MPlJPrU. Pro members get alerts 1 day early. $ATML $XRX $GGB $BAXS $ARIA
Dave
19 Dec 14 18:29:35
I didnt know the pro members get the opening bell alerts from http://t.co/qY5MPlJPrU 1 day early. $ARIA $HK $GERN $NIHDQ $AU $SIMH
Langan Stocks
19 Dec 14 18:17:03
$ARIA Recent News Updated Friday, December 19, 2014 9:03:24 PM $BIDU $BIDU $ABBV $UUP http://t.co/VVKs76GYpv
Leonie Machado
19 Dec 14 17:27:50
#Stocks you might want to hold onto $DISH $ARIA $HCA $FEYE Must have http://t.co/GVhHv8i1UJ
Dana Mcginnis
19 Dec 14 17:18:46
Small-cap stocks breaking 52-wk high prices $ARIA $MHK $TCB $CSIQ #Research http://t.co/ZKWkRsK3cX
Langan Stocks
19 Dec 14 17:16:40
$ADMD Last Price Updated Friday, December 19, 2014 8:03:24 PM $OIL $ABX $ARIA $ABBV http://t.co/99thPcOxci
StockNewsWires
19 Dec 14 16:53:07
$ARIA: Insider Buying: Harvey JMD Berger Purchases 25000 Shares of ... http://t.co/nA4XPXAA4K http://t.co/4m32oHEupN
ProTradersNews
19 Dec 14 16:43:03
$ARIA: Insider Buying: Ariad Pharmaceuticals CEO Acquires 25000 Shares ... http://t.co/HPn56BYq1q http://t.co/MOhS66vltC
Raymond Mooney
19 Dec 14 16:24:57
Great close to week $ARIA $MACK $CLDX
Raymond Mooney
19 Dec 14 16:14:17
Ariad Pharmaceuticals Analyst Ratings, Earnings, Dividends & Insider Trades (NASDAQ:ARIA) http://t.co/0Cij7y3NOP via @RatingsNetwork $ARIA
Rosner Stocks
19 Dec 14 16:13:11
$KO Stock Price Updated Friday, December 19, 2014 6:59:24 PM $KMI $GPRO $NLNK $ARIA http://t.co/W01mJQJYR3
Matius  West
19 Dec 14 16:07:55
Was a good day for pharma companies $ARIA $INO $ENTA 💊
12Stocks.com
19 Dec 14 16:03:10
MidCap #Stocks Performance $NBR $DNR $EPE $LPI $KMX $SD $RHT $ZNGA $ARIA $NFX $HP $CLF $TDW $CIE $WLL more@ http://t.co/gYYX3fEVde
Charlie
19 Dec 14 15:24:52
$ARIA CEO Harvey Berger buys $160,000 in $ARIA stock! #cnbc #msnbc $pfe $ctic #POTUS $gsk $bac $ge #money #investing #gaza #Israel
Helena Sasser
19 Dec 14 14:57:58
Are you thinking of Investing in $TRI $NLSN $ARIA $ABX Worth a look http://t.co/Li0ucoiInM
PennyStock Zone
19 Dec 14 14:46:32
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/37mHH9cdhB $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
PennyStock Zone
19 Dec 14 14:15:38
'Choose yourself!' book review http://t.co/eI9c5QLAlt $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Rhona Keeling
19 Dec 14 14:05:34
This weeks Stocks you should Watch $ONNN $ARIA $CBL $LGND #liquidity http://t.co/lLwMlPCwLS
Wall Street
19 Dec 14 14:00:47
http://t.co/iQWRYqnOQl....Top penny stocks, NYSE, and NASDAQ trades from the stock market today. +296% last week. $ARIA $MYEC $SWET
Conf Call Tran
19 Dec 14 14:00:04
ARIAD Pharmaceuticals's Chairman & CEO just picked up 25,000 shares $ARIA http://t.co/mGJ3JNm5mV
Austin Rohwer
19 Dec 14 13:59:35
@jimcramer why the huge jump by $ARIA?
SmallCaps
19 Dec 14 13:56:45
'Choose yourself!' book review http://t.co/RXxaR2IqG0 $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Stock Rocket
19 Dec 14 13:42:28
Thanks to the 5 pro traders at http://t.co/5jbX6mNKQv for an amazing week! My win rate was 80%. So sweet. $ARIA $GNBT $CIG $NVAX
Baffoe K8B Awotwi
19 Dec 14 13:38:41
$ARIA - Statement of Changes in Beneficial Ownership (4) http://t.co/5XZ5zgVRdy
Stocks News&Markets
19 Dec 14 13:37:59
$ARIA - Statement of Changes in Beneficial Ownership (4) http://t.co/NKjx0TGYjo
				
				
By  +Follow March 28, 2014 9:43AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.