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
CashRocket
24 May 15 19:38:50
@Mazmasta $ARIA Jun 9P in OI were sold hand over fist on May 15th http://t.co/XFvRVkstVJ
Stock Dawgzz
24 May 15 19:00:46
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $FASC $ARIA $TUCN
StockenheimerSchmidt
24 May 15 18:54:21
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $FASC $ARIA $TUCN
Penny Stockington
24 May 15 18:52:31
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVUosJ4 $FASC $ARIA $TUCN
Stock Rocket
24 May 15 18:52:28
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $FASC $ARIA $TUCN
Stockaholics
24 May 15 18:47:57
Our Penny Stock Pick On $THCZ Is Up 570.77% For Platinum Members! Big Update: http://t.co/dXhKtfHUdQ $FASC $ARIA $TUCN
Capital Market Labs
24 May 15 17:54:16
$ACOR vs. $ARIA vs. $EBS vs. $FGEN Compared Across 9 Critical Measures http://t.co/xXJiLWLbvm http://t.co/sCbeulkjwn
Capital Market Labs
24 May 15 17:28:59
$ACOR vs. $NLNK vs. $PDLI vs. $ARIA Compared Across 9 Critical Measures http://t.co/gCbtjAOaFn http://t.co/zioANxTjE1
Capital Market Labs
24 May 15 17:22:24
$AMAG vs. $ARIA vs. $OPHT vs. $PDLI Compared Across 9 Critical Measures http://t.co/RiAWyTW6xK http://t.co/VT4pEgu0Kv
Sam
24 May 15 16:13:04
A few more of interest: $AMBA $ADXS $AAL $AMGN $AMZN $ARIA $ARRY $ASHR http://t.co/bh923uwZvq http://t.co/4FnIdJEh6d
Capital Market Labs
24 May 15 15:28:09
$IRWD vs. $INSY vs. $ARIA vs. $OPHT Compared Across 9 Critical Measures http://t.co/CmkYBNeO3Q http://t.co/bWjBjBhhH2
NYSEStocks
24 May 15 13:13:18
RT @Sourcingstocks: We love $ARIA and $DRRX @ http://t.co/GsvIgQCZ70 - #biotech, #sourcingstocks, #NASDAQ http://t.co/poD25fyOVs
NASDAQStocks
24 May 15 13:12:09
RT @Sourcingstocks: We love $ARIA and $DRRX @ http://t.co/GsvIgQCZ70 - #biotech, #sourcingstocks, #NASDAQ http://t.co/poD25fyOVs
Miningfinance
24 May 15 13:10:08
RT @Sourcingstocks: We love $ARIA and $DRRX @ http://t.co/GsvIgQCZ70 - #biotech, #sourcingstocks, #NASDAQ http://t.co/poD25fyOVs
binaryoptionsocial
24 May 15 13:03:06
RT bosocial RT Sourcingstocks We love $ARIA and $DRRX @ http://t.co/YjLfhaS7b5 - #biotech, #sourcingstocks, #NAS… http://t.co/XG5hVFJGig
binaryoptionsocial
24 May 15 12:59:24
RT Allstarmint RT Sourcingstocks: We love $ARIA and $DRRX @ http://t.co/YjLfhaS7b5 - #biotech, #sourcingstocks, … http://t.co/XG5hVFJGig
binaryoptionsocial
24 May 15 12:59:24
RT Sourcingstocks We love $ARIA and $DRRX @ http://t.co/YjLfhaS7b5 - #biotech, #sourcingstocks, #NASDAQ … http://t.co/XG5hVFJGig
Allstarmint.com
24 May 15 12:58:24
RT @Sourcingstocks: We love $ARIA and $DRRX @ http://t.co/GsvIgQCZ70 - #biotech, #sourcingstocks, #NASDAQ http://t.co/poD25fyOVs
Sourcingstocks.com
24 May 15 12:56:59
We love $ARIA and $DRRX @ http://t.co/GsvIgQCZ70 - #biotech, #sourcingstocks, #NASDAQ http://t.co/poD25fyOVs
Vegastrader66
24 May 15 12:22:39
This weeks Video $MNTA $PEIX $SZYM $ARIA and more http://t.co/gb0aHj48Kg http://t.co/lXHnirAgMP
Joseph Hopkins
24 May 15 12:20:42
RT @HedgeMind: $ARIA is Alex Denner's #1 activist target w/ 12.85mln shs, 6.87% stake. $AEGR, his new target, holds 7.07% 2mln sh. http://…
Stock Dawgzz
24 May 15 10:27:04
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $FASC $ARIA $TUCN
Penny Stockington
24 May 15 10:26:18
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVUosJ4 $FASC $ARIA $TUCN
StockenheimerSchmidt
24 May 15 10:22:06
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $FASC $ARIA $TUCN
Stock Rocket
24 May 15 10:20:35
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $FASC $ARIA $TUCN
Stockaholics
24 May 15 10:15:19
Our Penny Stock Pick On $THCZ Is Up 570.77% For Platinum Members! Big Update: http://t.co/dXhKtfHUdQ $FASC $ARIA $TUCN
Leo Kolivakis
24 May 15 08:22:03
My latest comment on top funds' activity in Q1 2015: http://t.co/shZWBbJigH $ABBV $ANAC $ARIA $BIIB $CELG $GILD $DSCO $TEVA $HTZ $PCLN
Capital Market Labs
24 May 15 07:44:41
$AMAG vs. $OPHT vs. $ARIA vs. $ACOR Compared Across 9 Critical Measures http://t.co/EzvwmcFwXO http://t.co/pwAis8iHx0
Capital Market Labs
24 May 15 07:23:42
$OPHT vs. $HALO vs. $IRWD vs. $ARIA Compared Across 9 Critical Measures http://t.co/2JghoBboJ7 http://t.co/zYTyCAlvxQ
Capital Market Labs
24 May 15 06:37:37
$MYGN vs. $OPHT vs. $ARIA vs. $INSY Compared Across 9 Critical Measures http://t.co/a5C0VBVwHd http://t.co/Xb48QlGXoh
Capital Market Labs
24 May 15 03:34:03
$FGEN vs. $NLNK vs. $ARIA vs. $OPHT Compared Across 9 Critical Measures http://t.co/ka0NVrKkvx http://t.co/8kPIHO3spz
Pepe Plata
24 May 15 02:19:42
RT @Alexpad: #TradeIdeas future growth $MJNA $CBIS and $ARIA
Stock Dawgzz
24 May 15 01:18:08
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $FASC $ARIA $TUCN
Penny Stockington
24 May 15 01:17:24
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVUosJ4 $FASC $ARIA $TUCN
StockenheimerSchmidt
24 May 15 01:15:54
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $FASC $ARIA $TUCN
Stock Rocket
24 May 15 01:14:02
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $FASC $ARIA $TUCN
Stockaholics
24 May 15 01:13:01
Our Penny Stock Pick On $THCZ Is Up 570.77% For Platinum Members! Big Update: http://t.co/dXhKtfHUdQ $FASC $ARIA $TUCN
Capital Market Labs
24 May 15 00:52:25
$FGEN vs. $MGNX vs. $NLNK vs. $ARIA Compared Across 9 Critical Measures http://t.co/xdzqpcCdia http://t.co/KI2dqlUqqZ
Capital Market Labs
23 May 15 22:46:37
$ACOR vs. $ARIA vs. $FGEN Compared Across 9 Critical Measures http://t.co/6Efco4fHej http://t.co/3M8kCCuX6W
Stock Rocket
23 May 15 21:38:29
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbtrUQ $FASC $ARIA $TUCN
E B
23 May 15 17:43:35
Anyone know how the June 9 $ARIA puts got there? Sold, or bought to open?
Capital Market Labs
23 May 15 17:36:26
$FGEN vs. $ARIA vs. $OPHT vs. $MACK Compared Across 9 Critical Measures http://t.co/ZNEnTbVl0Q http://t.co/RvAyHVTn3f
Beantown Bio
23 May 15 17:35:35
@Mazmasta $ARIA bullish engulfing candle
Capital Market Labs
23 May 15 17:20:01
$FGEN vs. $ARIA vs. $MACK vs. $MGNX Compared Across 9 Critical Measures http://t.co/dt21vRRBl2 http://t.co/QmeJWIKIqj
Capital Market Labs
23 May 15 16:58:58
$OPHT vs. $FGEN vs. $INSY vs. $ARIA Compared Across 9 Critical Measures http://t.co/exR94wZF28 http://t.co/iw5ONlGaK4
Sam
23 May 15 16:22:25
A few more of interest: $AMBA $ADXS $AAL $AMGN $AMZN $ARIA $ARRY $ASHR http://t.co/bh923uwZvq http://t.co/Wdsm2ylbWH
BigGains26
23 May 15 15:59:58
@Mazmasta $ARIA looks like a nice long consolidation ready for a breakout?
clsiena
23 May 15 12:20:13
RT @HedgeMind: Top Biotechs in Product stage w/ most hedge funds: $GILD $BIIB $CELG $AMGN $PCYC $ANAC $ARIA $BMRN $UTHR $ALXN $DYAX $MDVN $…
Capital Market Labs
23 May 15 11:59:31
$OPHT vs. $HALO vs. $FGEN vs. $ARIA Compared Across 9 Critical Measures http://t.co/bbeBALJb9W http://t.co/xULzSxIMeY
HedgeMind
23 May 15 11:40:15
Top Biotechs in Product stage w/ most hedge funds: $GILD $BIIB $CELG $AMGN $PCYC $ANAC $ARIA $BMRN $UTHR $ALXN $DYAX $MDVN $VNDA $AEGR $KERX
				
				
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.

Login or Register

LOG IN