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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
Market News
23 Aug 14 03:04:27
$ARIA: Concerns on Biotech Stocks- Gilead Sciences, Inc. (NASDAQ:GILD), Ariad ... http://t.co/3zna0GwEhA http://t.co/WZQ8zuSrH4
Market Monitor
23 Aug 14 02:04:33
$ARIA: Traders Are Watching: Ariad Pharmaceuticals Inc. (NASDAQ:ARIA), Brocade ... http://t.co/8JbznNpbYP http://t.co/N1Vv5s2CbL
OTPicks.com
23 Aug 14 01:45:32
http://t.co/hjgLwIcNgz danrocks: $XLV Showing on my streamers $ARIA $XLP $DUST: danrocks http://t.co/JjoFO6VN2G http://t.co/hjgLwIcNgz
Colin Macleod
22 Aug 14 18:37:24
August 22 2014 Ichimoku Patterns: Entered Ichimoku Cloud http://t.co/OSw79c35AN $F $DYN $VALE $EWJ $ABX $ARIA $TXN $TWX $AES $WFT $GG
Stock Signaling
22 Aug 14 16:31:11
Top Stocks (By Trading Liquidity): $GPRE $PVA $ICPT $GRPN $AEO $JBLU $FOLD $MNK $ECOM $AEGR $JASO $JRJC $ARIA $HIMX $ARO #stock #trading
Scott Haden
22 Aug 14 14:37:43
Commented on StockTwits: Curious why the bullishness right now with $ARIA ??? http://t.co/EzGZLf5U7D
Stock Signaling
22 Aug 14 13:31:12
Top Stocks (By Trading Liquidity): $PVA $ICPT $GRPN $AEO $JBLU $FOLD $MNK $ECOM $AEGR $JASO $JRJC $ARIA $HIMX $ARO $ARWR #analyst #mkt #dow
Dathan Pyle
22 Aug 14 13:23:59
RT @SeekingAlpha: Biotechs With Insider Buying http://t.co/9tYkBshB6O $ADMA $ARIA $DVAX $ENTA $GALT $INSY $PACB
Business News Now
22 Aug 14 13:04:30
$ARIA: Q2 2014 ARIAD Pharmaceuticals, Inc. Earnings Release - Before Market Open http://t.co/OOCiTQ5VO6 http://t.co/fdmBKDvIw8
Wall Street Monitor
22 Aug 14 12:04:29
$ARIA: Storm The Castle: ARIAD Pharmaceuticals (ARIA) http://t.co/oxl7t2k1zY http://t.co/Aa7quYgdMu
Sheldon Chaulk
22 Aug 14 11:43:15
RT @SeekingAlpha: Biotechs With Insider Buying http://t.co/9tYkBshB6O $ADMA $ARIA $DVAX $ENTA $GALT $INSY $PACB
Media Sentiment
22 Aug 14 11:24:53
$ARIA received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 274
john pagnotta
22 Aug 14 11:18:38
RT @SeekingAlpha: Biotechs With Insider Buying http://t.co/9tYkBshB6O $ADMA $ARIA $DVAX $ENTA $GALT $INSY $PACB
Craig Garbers
22 Aug 14 11:17:08
RT @SeekingAlpha: Biotechs With Insider Buying http://t.co/9tYkBshB6O $ADMA $ARIA $DVAX $ENTA $GALT $INSY $PACB
Seeking Alpha
22 Aug 14 11:16:14
Biotechs With Insider Buying http://t.co/9tYkBshB6O $ADMA $ARIA $DVAX $ENTA $GALT $INSY $PACB
Investors Hangout
22 Aug 14 11:13:46
danrocks: $XLV Showing on my streamers $ARIA $XLP $DUST http://t.co/rc3R2Oqowv
Investors Hangout
22 Aug 14 11:13:46
danrocks: $XLV Showing on my streamers $ARIA $XLP $DUST http://t.co/HFqiY8AZ2T
Investors Hangout
22 Aug 14 11:13:43
danrocks: $PBYI Showing on my streamers $EPI $ABX $ARIA http://t.co/cGsEjTXkO0
Investors Hangout
22 Aug 14 11:13:43
danrocks: $PBYI Showing on my streamers $EPI $ABX $ARIA http://t.co/9N5vLdXSoX
Business Headlines
22 Aug 14 11:04:32
$ARIA: Commit To Purchase ARIAD Pharmaceuticals At $3.50, Earn 21.4% Using Options http://t.co/QhPlQPX0b5 http://t.co/4Rrtji9UWj
dominic
22 Aug 14 11:02:30
$ARIA this pig should start moving on a laggard way. always the last
danrocks
22 Aug 14 10:54:23
$XLV Showing on my streamers $ARIA $XLP $DUST $SVL.TO $UA http://t.co/2Uyya1rJsr
danrocks
22 Aug 14 10:42:24
$PBYI Showing on my streamers $EPI $ABX $ARIA $LNKD $FCEL http://t.co/8RG78tug2N
Investors Hangout
22 Aug 14 10:16:59
clayton: $ARIA 5.8 http://t.co/UOfexITJfc
Investors Hangout
22 Aug 14 10:16:59
clayton: $ARIA 5.8 http://t.co/IufGsmXXZW
clayton
22 Aug 14 10:08:09
$ARIA 5.8 http://t.co/wG0iaokqN3
Stock News Guru
22 Aug 14 10:04:27
$ARIA: Will GW Pharmaceuticals (GWPH) Miss this Earnings Season? http://t.co/lLmvakCfWN http://t.co/Zb0sZOYaJF
leahanne
22 Aug 14 09:53:46
$INTC Intel Corp (INTC) 35.06 -0.09 (-0.26%) $UGAZ $FXI $ARIA http://t.co/g4sStq5JgN
Investors Hangout
22 Aug 14 09:50:39
DennyT: AMGN Research Reports $AMGN $HOD.TO $HD $ARIA http://t.co/M9GaYp3M40
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22 Aug 14 09:50:35
DennyT: AMGN Research Reports $AMGN $HOD.TO $HD $ARIA http://t.co/pGsU3plA88
Investors Hangout
22 Aug 14 09:39:41
danrocks: $BITA Hitting Buzz $ARIA $VOIS $SLV $XIV $SMH http://t.co/jIeZxjxHfD
Investors Hangout
22 Aug 14 09:39:27
danrocks: $BITA Hitting Buzz $ARIA $VOIS $SLV $XIV $SMH http://t.co/Q9Sr7kD4Hr
iHangout
22 Aug 14 09:33:16
http://t.co/vVojvVrNNL DennyT: Xtremepicks Alerts: AMGN Research Reports $AMGN $HOD.TO $HD $ARIA http://t.co/F22BbD69i7
danrocks
22 Aug 14 09:21:00
$BITA Hitting Buzz $ARIA $VOIS $SLV $XIV $SMH http://t.co/GileK1rctj
Investors Hangout
22 Aug 14 08:45:28
DennyT: MEET Short Sales $MEET $TFM $GRCU $ARIA $PRAN http://t.co/sNQBr6hqBb
Investors Hangout
22 Aug 14 08:45:27
DennyT: MEET Short Sales $MEET $TFM $GRCU $ARIA $PRAN http://t.co/qGj8vDq458
Stock Updates
22 Aug 14 08:04:27
$ARIA: Should You Sell Ariad Pharmaceuticals (ARIA) Before Earnings? http://t.co/rDv5fAvh4j http://t.co/anDe4sWHhR
leahanne
22 Aug 14 07:19:35
$AA Alcoa Inc (AA) 16.33 -0.02 (-0.12%) $GDXJ $AAPL $ARIA http://t.co/mbLQpIjMdl
dougheuring
22 Aug 14 07:07:50
$aria ARIA: Iclusig TRx/NRx are 121/42 in week 31 since the January re-launch.
Stock Signaling
22 Aug 14 07:01:10
Top Stocks (By Trading Liquidity): $MNK $ECOM $AEGR $JASO $JRJC $ARIA $HIMX $ARO $ARWR $SUNE $CIEN $SFY $INO $CNAT $ECYT #markets #trader
Investors Hangout
22 Aug 14 06:50:20
chartguy89: ARIA Stock Chart $ARIA $EOX $PSMI $UUP http://t.co/GgkiqORbb5
Investors Hangout
22 Aug 14 06:50:20
chartguy89: ARIA Stock Chart $ARIA $EOX $PSMI $UUP http://t.co/uMHY4lodDs
danrocks
22 Aug 14 06:41:07
$INTC alot of talk going around about this one $FB $TC $ABX $ARIA $HYG http://t.co/QBMjEqa9Fm
Market News Desk
22 Aug 14 06:04:35
$ARIA: ARIAD to Webcast Conference Call on Second Quarter 2014 Financial Results http://t.co/oK9HM9EQ2K http://t.co/ywlYYagL3V
iHangout
22 Aug 14 02:40:52
http://t.co/l4qmOlz0qf Stock_Tracker: Stock DD Board: Ariad Pharmaceuticals (ARIA) 5.90 $ARIA 5 Stocks http://t.co/F99S1qjefW
Business Headlines
21 Aug 14 21:04:28
$ARIA: Why Ariad Pharmaceuticals (ARIA) Stock Is Down Today http://t.co/OOMnbCbV6j http://t.co/fOZhTWxzE5
Colin Macleod
21 Aug 14 20:16:03
August 21 2014 Chart Patterns: Channel Down http://t.co/9d3wcxJQ28 $ARIA $JNPR $GNC $LPX $EDU $TIBX $CGA $AEGR
Colin Macleod
21 Aug 14 18:56:57
August 21 2014 Recent Insider Buying http://t.co/fnZyvSZaOl $CLF $FOLD $ARIA $MHR $GNC $OPK $PM $AEGR $ARCC $REXX
Gotham City Capital
21 Aug 14 18:50:47
RT @SolarMelt: $ARIA has a beautiful double bottom, but she's going back down. Overbought, Money Flow Negative, Distribution ...
Solar Melt
21 Aug 14 18:44:24
$ARIA has a beautiful double bottom, but she's going back down. Overbought, Money Flow Negative, Distribution ...
				
				
By  +Follow March 28, 2014 9:43AM
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