BKS Stock Pops as SEC Filing Breathes Life Into Buyout Buzz

Barnes & Noble stock is eyeing its highest close of 2018

Digital Content Manager
Nov 28, 2018 at 11:21 AM
facebook X logo linkedin

Shares of Barnes & Noble, Inc. (NYSE:BKS) are trading up 3.3% at $7.32 today, after a Securities and Exchange Commission (SEC) filing indicated Executive Chairman -- and the firm's biggest shareholder -- Leonard Riggio "is evaluating, and may participate in, the potential sale process" of the company. Early last month, BKS stock gapped higher after the book seller announced it was reviewing strategic alternatives, including a potential sale. Riggio in 2013 abandoned plans to buy Barnes & Noble's bookstores.

Since the October bull gap, BKS stock has traded mostly in the $6-$7 range, with support emerging from its 320-day moving average. The equity tested the bottom of this range last week, after the company reported weaker-than-expected quarterly same-store sales. Today, BKS has broken out of its range, pacing for its highest close of 2018.

Analysts are relatively quiet on BKS, with two of the three following the stock giving it a tepid "hold" rating. The consensus 12-month price target of $7.25 is in line with the stock's current price. However, until there's clarity on the M&A future of Barnes & Noble, the brokerage bunch could stand pat.

Meanwhile, the roughly 11.47 million shares sold short represents a healthy 21% percent of the stock's available float. At BKS' average daily trading volume, this represents nearly seven sessions' worth of pent-up buying demand. 




Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI