M&A Buzz Boosts Andersons Inc (ANDE) and Church & Dwight Co., Inc. (CHD)

M&A buzz is helping Andersons Inc (NASDAQ:ANDE) and Church & Dwight Co., Inc. (NYSE:CHD) trade higher today

May 18, 2016 at 11:46 AM
facebook X logo linkedin

There's been plenty of action on the M&A front this month, and that's continuing today. Agribusiness Andersons Inc (NASDAQ:ANDE) and consumer goods manufacturer Church & Dwight Co., Inc. (NYSE:CHD) are both trading higher thanks to takeover chatter. Let's take a closer look at today's news on ANDE and CHD stocks. 

ANDE is rallying today -- a rare occurrence -- on news the company rejected a two unsolicited bids from HC2 Holdings Inc (NYSEMKT:HCHC). The Andersons' board "unanimously determined that both of HC2's proposals" -- the most recent of which was $1 billion, or $37 per share -- "undervalue" the company, and "represent an opportunistic attempt to acquire the company at a low point in the industry cycle." With the stock up 34.7% at $34.95, ANDE is looking at its best close since early December. 

This pop is horrible news for ANDE short sellers. Though short interest represents just 5.5% of the stock's float, it would take these bears nine days to cover their positions, at ANDE's average daily volume. Analysts are also bearish, with 75% calling ANDE a "hold." 

CHD has gained 2% to sit at $97.51, earlier touching a record high of $99.25, thanks to rumblings of buyout interest from consumer goods heavyweight Procter & Gamble Co (NYSE:PG)​. This positive performance is nothing new for CHD, as the shares have been in an impressively steady multi-year uptrend. 

Options traders have certainly taken notice, with CHD calls trading at 21 times the intraday norm today. It's possible traders are buying to open the July 105 call, possibly betting on a bid north of $105 per share from PG. 

Elsewhere, CHD sports elevated short-interest levels. At the stock's average pace of trading, it'd take shorts two weeks to cover their positions. And analysts are also surprisingly downbeat. Ten of the 15 analysts covering Church & Dwight Co., Inc. (NYSE:CHD) say it's a "hold," "sell," or "strong sell." 

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI