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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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

Results for ARIA
Penny Stock Secret
31 Mar 15 16:43:57
Premium Alerts Ranked #1 For Gains 2834% Last Week http://t.co/NovWYe2RAx .. $INSY $SIGI $ARIA
Capital Market Labs
31 Mar 15 16:41:24
$FGEN vs. $INSY vs. $ARIA Compared Across 9 Critical Measures Chart: http://t.co/TLRsVxOIpo
Investors Hangout
31 Mar 15 16:38:59
$XLV Volume Click Here: http://t.co/LOtC6kDrSG Also See: $THCZ $AMBA $XLV $ARIA ~
Sam
31 Mar 15 16:12:06
A few more of interest: $AMBA $ADXS $AAL $AMGN $AMZN $ARIA $ARRY $ASHR http://t.co/bh923uwZvq http://t.co/IA6t9pnjol
FinSentS NASDAQ
31 Mar 15 15:46:04
$ARIA:US Ariad Pharmaceuticals Sees Large Decline in Short Interest (ARIA) #ARIAD PHARMACEUTICALS INC http://t.co/SoFTrY5TSL #NASDAQ
Stock_Tracker
31 Mar 15 15:38:40
Ariad Pharmaceuticals (ARIA) 8.24 $ARIA Uptrend Call Working As Ariad Pharmaceuticals Stock Rises 19.1% (ARIA) http://t.co/2wYWuClu8j
Chasing Stars
31 Mar 15 15:31:29
Stocks Trending Now: http://t.co/TOZZHCmIkp $SH $AXPW $ARIA $ALK $GDX $GRCU $TQQQ $GENE $JUNO $AAL $PBR $IBB ~
Stock Rocket
31 Mar 15 15:29:14
Platinum Members Saw Penny Stock Picks Gain Over 1400% In 4 Months! Go Platinum: http://t.co/PsSamxklfe $FASC $ARIA $TUCN
Greg David
31 Mar 15 15:27:25
http://t.co/RMvVXnJDpv does trade alerts differently than anyone else. Its super cool. $ARIA $HT $CIM $BAS $ARNA
Thomas Collins
31 Mar 15 14:01:17
$ARIA Insider Selling News: QUALCOMM, Inc. (QCOM), Pandora Media Inc (P), Ariad ... http://t.co/RhTdlvs8eH
SmallCaps
31 Mar 15 13:10:32
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/AKjszqM28B $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Penny Stockington
31 Mar 15 12:58:24
Our Penny Stock Pick On $THCZ Is Up Over 400% So Far! Big News: http://t.co/SlU3u7rKnL $FASC $ARIA $TUCN
Speculator
31 Mar 15 12:54:59
$ARIA easy short
Trader News Daily
31 Mar 15 12:50:29
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Stockaholics
31 Mar 15 12:48:25
Our Penny Stock Alerts Gained Over 1400% In Just Over 4 Months! Subscribe today: http://t.co/w9IKB0aLmu $FASC $ARIA $TUCN
Quantcha
31 Mar 15 12:47:09
Covered Call Alert: ARIAD PHARMACEUTICALS $ARIA returning up to 44.17% through 21-Aug-2015 http://t.co/MPxaKMM6YW
Jack Trader
31 Mar 15 12:34:18
$ARIA Ariad Pharmaceuticals Sees Significant Decrease in Short Interest (ARIA) http://t.co/wF9IN8F53o
Capital Market Labs
31 Mar 15 12:25:09
RT @OphirGottlieb: Small Cap Biotech: R&D - 1 $MDCO 2 $GHDX 3 $EXEL 5 $ARIA 10 $TGTX Plot of all --> http://t.co/jbKBfluFlq
Capital Market Labs
31 Mar 15 12:24:57
RT @OphirGottlieb: Small Cap Biotech: R&D - 1 $MDCO 2 $GHDX 3 $EXEL 5 $ARIA 10 $TGTX Plot of all --> http://t.co/jbKBfluFlq
Ophir Gottlieb
31 Mar 15 12:22:48
Small Cap Biotech: R&D - 1 $MDCO 2 $GHDX 3 $EXEL 5 $ARIA 10 $TGTX Plot of all --> http://t.co/jbKBfluFlq
BlockTradeAlert
31 Mar 15 12:14:11
BLOCK TRADE: $ARIA 290,400 shares @ $8.40 [15:14:11]
Faris Sleem
31 Mar 15 12:06:46
$ARIA getting dumped Im shorting
BlockTradeAlert
31 Mar 15 12:00:34
BLOCK TRADE: $ARIA 337,500 shares @ $8.40 [15:00:33]
chartguy89
31 Mar 15 11:59:31
ARIA -1.99% Stock Charts $ARIA Ariad Pharmaceuticals Inc. (NASDAQ) Last Updated: 03/31/2015 13:59:31 ARIA Stoc http://t.co/2uVJyYe7jA
StockenheimerSchmidt
31 Mar 15 11:45:10
$PPCH Gained As Much As 1005% Within 3 Days! Market News: http://t.co/oGWehWr8rK $FASC $ARIA $TUCN
Stock Dawgzz
31 Mar 15 11:33:33
Our Penny Stock Picks On $THCZ & $RCGP Gained A Combined 700% so far! Blog Update: http://t.co/g3eVEb0uXG $FASC $ARIA $TUCN
Lusitanian Traders
31 Mar 15 11:25:34
ARIA - Pivots (support and resistance - intraday) $ARIA http://t.co/hkx9CkMXCP
Mark Trader
31 Mar 15 10:13:35
http://t.co/U0VrKn1h21 has the most reliable picks in the market. The move fast and never fail. $WEN $SPF $NLY $GFI $SRC $ARIA
stockschamp
31 Mar 15 09:04:07
This Guy Turned $100 Into Over $10,000 In Just 30 Days!!! http://t.co/8WvnrVmkBS .. $FASC $ARIA $TUCN
FinSentS NASDAQ
31 Mar 15 07:37:23
$ARIA:US Ariad Pharmaceuticals Sees Large Decline in Short Interest (ARIA) #ARIAD PHARMACEUTICALS INC http://t.co/1WX7MrTgCa #NASDAQ
StockAviator.com
31 Mar 15 07:27:59
Join thousands of traders at http://t.co/5uY8SDUOvE. 5 pro trading gurus alerted 500% gains last week. $GSAT $BBRY $ZNGA $RAD $ARIA
Trader News Daily
31 Mar 15 06:53:22
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Phil Martin
31 Mar 15 06:00:57
$ARIA http://t.co/rcTdEjC92q
Like2trade
31 Mar 15 05:03:53
Biotech watch $IMGN (upgrade $12 tgt) $aria (3 green candles) $ONVO (new 52 wk low) $BCRX (govt contract 4 ebola) #stocks #biotech #trading
Like2trade
31 Mar 15 04:39:04
Biotech to watch this morning $IMGN (upgrade $12 tgt) $aria (3 green candles) $MNKD (crossed 15 day ma--up) $ONVO (new 52 wk low yesterday)
Capital Market Labs
31 Mar 15 02:10:24
$ACOR vs. $NLNK vs. $ARIA vs. $EBS Compared Across 9 Critical Measures Chart: http://t.co/9oMpgKkPgm
US Banking News
30 Mar 15 23:42:23
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA http://t.co/WZWZQ4xdIV
Penny Stockington
30 Mar 15 23:38:16
Our Penny Stock Pick On $THCZ Is Up Over 400% So Far! Big News: http://t.co/SlU3u7rKnL $FASC $ARIA $TUCN
Ticker Report
30 Mar 15 23:26:27
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA http://t.co/dYihVSCHcr
Capital Market Labs
30 Mar 15 22:42:11
$NLNK vs. $ARIA vs. $GHDX vs. $MDXG Compared Across 9 Critical Measures Chart: http://t.co/upRc923Ab7
SmallCaps
30 Mar 15 22:24:28
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/AKjszqM28B $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Stock Dawgzz
30 Mar 15 21:49:07
Our Penny Stock Picks On $THCZ & $RCGP Gained A Combined 700% so far! Blog Update: http://t.co/g3eVEaITz6 $FASC $ARIA $TUCN
Stock Rocket
30 Mar 15 20:29:46
Platinum Members Saw Penny Stock Picks Gain Over 1400% In 4 Months! Go Platinum: http://t.co/PsSamxBW6M $FASC $ARIA $TUCN
StockenheimerSchmidt
30 Mar 15 20:03:48
$PPCH Gained As Much As 1005% Within 3 Days! Market News: http://t.co/oGWehWIJji $FASC $ARIA $TUCN
GoGoBio
30 Mar 15 19:11:07
RT @dougheuringaria: Citi Removing $ARIA $ARQL $SUPN Least PreferredWe are removing ARIA, ARQL and SUPN because we have discontinued covera…
Stockaholics
30 Mar 15 18:58:44
Our Penny Stock Alerts Gained Over 1400% In Just Over 4 Months! Subscribe today: http://t.co/w9IKB0aLmu $FASC $ARIA $TUCN
Lusitanian Traders
30 Mar 15 18:19:52
ARIA - Pivots (support and resistance - intraday) $ARIA http://t.co/D07lGKRZqR
Trader News Daily
30 Mar 15 17:10:32
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Sam
30 Mar 15 16:50:09
A few more of interest: $AMBA $ADXS $AAL $AMGN $AMZN $ARIA $ARRY $ASHR http://t.co/bh923uwZvq http://t.co/BTiknKGiQl
leahanne
30 Mar 15 16:06:10
Volume Alert - ARIA 8.56 Ariad Pharmaceuticals $ARIA Hit a high today of 8.69 Closing the day 03/30/15 at 8.56 http://t.co/UXhQnqpznK
				
				
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.