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Ariad Pharmaceuticals (ARIA) Jumps on More Buyout Rumors

By  +Follow March 28, 2014 9:43AM
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.




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Results for ARIA
30 Jul 15 02:14:02
$ARIA is rated BUY, 20.0% upside by Wall Street analysts based on average ratings/targets http://t.co/RTsgFQR65M http://t.co/hTJLVJRmfg
30 Jul 15 01:19:30
TLT iShares Barclays 20+ Year Treasury Bond Fund Last Price http://t.co/tWIfOdB1EC $TLT $GOOG $ARIA $FB #TLT #p… http://t.co/Csk7miIhta
30 Jul 15 01:04:44
TLT iShares Barclays 20+ Year Treasury Bond Fund Last Price http://t.co/tWIfOdB1EC $TLT $GOOG $ARIA $FB #TLT #p… http://t.co/Csk7miIhta
30 Jul 15 00:51:35
XLY Consumer Discretionary Select Sector SPDR E.P.S. http://t.co/pOWzdTpP5y $XLY $NKE $ARIA $ACHC #XLY #finance #stockmarket
30 Jul 15 00:50:37
UVXY ProShares Ultra VIX Short-Term Futures ETF 52Wk Low http://t.co/baTTP04p92 $UVXY $BECN $ARIA $VOD #UVXY #finance #pennystocks
30 Jul 15 00:50:15
YANG Direxion Daily China Bear 3x Shares Ask http://t.co/jCKJgTxRm5 $YANG $EWA $IWM $ARIA #YANG #investing #stock
30 Jul 15 00:50:15
TLT iShares Barclays 20+ Year Treasury Bond Fund Last Price http://t.co/lz3L8UqTeR $TLT $GOOG $ARIA $FB #TLT #pennystocks #stock
Lucky Jimmy
30 Jul 15 00:49:23
UA Under Armour, Inc. Stock Forum http://t.co/vko3Q4vmtg $UA $AB $ARIA $XIV #UA #pennystocks #stock
30 Jul 15 00:49:18
RUSL Direxion Daily Russia Bull 3x Shares Stock Forum http://t.co/oqiiHEM41I $RUSL $ARIA $EDZ $DWTI #RUSL #share #finance
30 Jul 15 00:48:06
WPRT Westport Innovations Inc. Ask Size http://t.co/ffbTfBI1j5 $WPRT $GOOG $ARIA $OIL #WPRT #nasdaq #stocks
30 Jul 15 00:45:21
RT @rosnerstocks: ARIA ARIAD Pharmaceuticals, Inc. Filings http://t.co/iN5jj4oXbr $ARIA $SNDK $IGEX $CTIX #ARIA #investing #stocks
30 Jul 15 00:43:29
LMT Lockheed Martin Corp. Quotes http://t.co/ZAumUuMqm7 $LMT $XLP $ARIA $ALGN #LMT #finance #share
IH News Desk
30 Jul 15 00:42:33
OIL iPath S&P GSCI Crude Oil Total Return Index ETN Ask Size http://t.co/SbshK1aWvR $OIL $ARIA $KODK $ATVI #OIL #share #share
30 Jul 15 00:41:35
MYEC MyECheck, Inc. P/E Ratio http://t.co/SKw39bXeCI $MYEC $RELIANCE.IN $ARIA $INFN #MYEC #stocks #stock
30 Jul 15 00:41:08
GS Goldman Sachs Group, Inc. Last Price http://t.co/XDyLkoMcnp $GS $ALGN $TQQQ $ARIA #GS #stocks #stockmarket
30 Jul 15 00:40:05
HK Halcon Resources Corp. Current Price http://t.co/h9VxPxxETJ $HK $ARIA $XON $TQQQ #HK #finance #stocks
30 Jul 15 00:38:24
EA Electronic Arts, Inc. Investor Opinions http://t.co/XRFL4jKwbt $EA $ARIA $GM $AGN #EA #finance #invest
30 Jul 15 00:38:09
FEYE FireEye Inc. Filings http://t.co/IEXo6ZKWoF $FEYE $BECN $ARIA $ERX #FEYE #stocks #investing
30 Jul 15 00:37:08
EEM iShares MSCI Emerging Markets % Change http://t.co/b4XMe95F8k $EEM $CVS $MDY $ARIA #EEM #share #finance
30 Jul 15 00:37:06
EWC Canada iShares EOD Data http://t.co/zLq0GAFwvt $EWC $ARIA $WWAV $CEMP #EWC #pennystocks #share
Stock Forums
30 Jul 15 00:36:35
DUST Direxion Daily Gold Miners Bear 3x Shares News http://t.co/Bu16T9pDbI $DUST $INFY.IN $ARIA $AB #DUST #pennystocks #stocks
30 Jul 15 00:36:05
COF Capital One Fncl Corp. Investor Opinions http://t.co/9ZNRRsFYo8 $COF $XOM $RUSL $ARIA #COF #finance #stock
30 Jul 15 00:34:12
ARIA ARIAD Pharmaceuticals, Inc. Summary http://t.co/x1NiDTIetN $ARIA $YANG $BABA $TTPH #ARIA #share #investing
Rosner Stocks
30 Jul 15 00:34:10
ARIA ARIAD Pharmaceuticals, Inc. Volume http://t.co/cBH5L01TVQ $ARIA $PVA $XLI $UVXY #ARIA #share #investing
30 Jul 15 00:34:09
AEM Agnico Eagle Mines Ltd. Financials http://t.co/GTHJ25dknS $AEM $ARIA $LMT $UNG #AEM #finance #pennystocks
Rosner Stocks
30 Jul 15 00:34:08
ARIA ARIAD Pharmaceuticals, Inc. Filings http://t.co/iN5jj4oXbr $ARIA $SNDK $IGEX $CTIX #ARIA #investing #stocks
Investors Hangout
30 Jul 15 00:34:05
ARIA ARIAD Pharmaceuticals, Inc. 52Wk High http://t.co/eQhs5GKapk $ARIA $EWG $WB.TO $ADP #ARIA #tradeideas #finance
30 Jul 15 00:33:06
ARIA ARIAD Pharmaceuticals, Inc. Last Price http://t.co/R293Y94lse $ARIA $GDXJ $OIL $CPHD #ARIA #tradeideas #pennystocks
Rosner Stocks
30 Jul 15 00:31:14
AA Alcoa, Inc. EOD Data http://t.co/5cvb6YCC0J $AA $XLU $IWM $ARIA #AA #investing #stock
30 Jul 15 00:19:38
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBLU $C
30 Jul 15 00:13:09
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBLU $CC
30 Jul 15 00:04:31
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH #Yellen $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBL
Michael Cook
29 Jul 15 23:21:00
Our Stock Alerts Gained Over 550% This Month Already! See Our Huge New Pick Coming This Week: http://t.co/abs4Q0eCx9 $FASC $ARIA $TUCN
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29 Jul 15 23:18:36
Our Penny Stock Picks Have Gained 3,600% In 10 Months! Get Early Access To Our Next Pick: http://t.co/xXdYdpiHOc $FASC $ARIA $TUCN
Michael James
29 Jul 15 23:17:20
After A MASSIVE 525% Gain On $GEQU, We Have A New Pick Ready! Special Update: http://t.co/wFGuoX67mX $FASC $ARIA $TUCN
29 Jul 15 22:46:02
FXC Currency Shares Canadian Dollar Trust EOD Data http://t.co/ux1ICm6iIr $FXC $ARIA $PFE $FXI #FXC #stocks #na… http://t.co/Csk7miIhta
29 Jul 15 22:36:05
FXC Currency Shares Canadian Dollar Trust EOD Data http://t.co/OCaHK7Jhc2 $FXC $ARIA $PFE $FXI #FXC #stocks #nasdaq
29 Jul 15 22:32:06
ARIA ARIAD Pharmaceuticals, Inc. Investor Opinions http://t.co/a8Z8fbGZ3b $ARIA $SLTD $NWBO $MU #ARIA #invest #tradeideas
29 Jul 15 20:17:57
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBLU $C
29 Jul 15 20:09:25
$JPM JPMorgan http://t.co/UKZ3MRGmpH $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBLU $CC
29 Jul 15 19:15:55
$JPM JPMorgan http://t.co/OzAW2OZN3d $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB … http://t.co/Csk7miIhta
29 Jul 15 19:12:31
$JPM JPMorgan http://t.co/OzAW2OZN3d $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB … http://t.co/Csk7miIhta
29 Jul 15 19:10:57
Yu Zhu
29 Jul 15 19:06:31
RT @dougheuringaria: JMP $ARIA http://t.co/JNwZcpcjxR
29 Jul 15 18:38:28
$JPM JPMorgan http://t.co/UKZ3MRGmpH $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBLU $cctl
29 Jul 15 18:24:36
JMP $ARIA http://t.co/JNwZcpcjxR
29 Jul 15 17:45:25
$SHAK Shake Shack Inc http://t.co/UKZ3MRGmpH $KMI $WMT $CEMP $NAT #KMI #pennystocks $MYEC $SGYP $ARIA $NVAX #MYEC $FB $NFLX $AMZN $JBLU
Lucky Jimmy
29 Jul 15 17:38:33
GOOGL Google Inc. - Class A Prev Close http://t.co/0IXJ5v0crD $GOOGL $ARIA $AA $BIDU #GOOGL #investing #tradeideas
29 Jul 15 17:38:33
GPRO GoPro, Inc. Short Sales http://t.co/H1yezb6jQU $GPRO $ARIA $VLO $VZ #GPRO #investing #invest
Stock Forums
29 Jul 15 17:32:10
ARIA ARIAD Pharmaceuticals, Inc. Filings http://t.co/SaUZ5mOVAp $ARIA $LQD $HF $FDX #ARIA #stockmarket #stock
By  +Follow March 28, 2014 9:43AM



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