Higher than ordinary trading volume of Kellogg Co., accompanied a spike Thursday in the stock rate, is sustaining speculation that the Fight Creek grain maker is a prospective acquisition target.
In an email today to the Free Press, Kellogg spokesperson Kris Charles stated: "We do not respond to reports and speculation.".
Kellogg shares rose to $66.39 by Thursday's close, just below its 52-week high of $67.98. In addition, Bloomberg News reported that the 6 % climb in share cost was the biggest one-day gain in 5 years. The business also was amongst the most significant percentage gainers on the New York Stock Exchange.
The same day, more than 25,000 contracts giving investors the right to purchase the stock altered hands.
Just prior to twelve noon today, the cost had actually dropped to $64.74 a share, but there has been higher-than-average trading volume once again this morning.
"This is absolutely the sort of alternatives action that can indicate takeover activity," Christopher Rich, head choices strategist at JonesTrading Institutional Services in Chicago stated, according to Bloomberg. "Normally individuals sell out-of-the-money calls to generate additional income in a stock like this, however that was not exactly what happened here this afternoon. There are definitely bullish Kellogg call purchasers below.".
In addition, Trade-Ideas-- a company that tracks stocks-- determined Kellogg as a "barbarian at eviction" candidate, TheStreet reported. The stock watcher drew this conclusion by looking at the business's average dollar volume and general volume.
TheStreet said Trade-Ideas targets these stocks since it is "displaying an uncommon behavior while displaying positive cost action.".
In an email today to the Free Press, Kellogg spokesperson Kris Charles stated: "We do not respond to reports and speculation.".
Kellogg shares rose to $66.39 by Thursday's close, just below its 52-week high of $67.98. In addition, Bloomberg News reported that the 6 % climb in share cost was the biggest one-day gain in 5 years. The business also was amongst the most significant percentage gainers on the New York Stock Exchange.
The same day, more than 25,000 contracts giving investors the right to purchase the stock altered hands.
Just prior to twelve noon today, the cost had actually dropped to $64.74 a share, but there has been higher-than-average trading volume once again this morning.
"This is absolutely the sort of alternatives action that can indicate takeover activity," Christopher Rich, head choices strategist at JonesTrading Institutional Services in Chicago stated, according to Bloomberg. "Normally individuals sell out-of-the-money calls to generate additional income in a stock like this, however that was not exactly what happened here this afternoon. There are definitely bullish Kellogg call purchasers below.".
In addition, Trade-Ideas-- a company that tracks stocks-- determined Kellogg as a "barbarian at eviction" candidate, TheStreet reported. The stock watcher drew this conclusion by looking at the business's average dollar volume and general volume.
TheStreet said Trade-Ideas targets these stocks since it is "displaying an uncommon behavior while displaying positive cost action.".