Chinese Stock Swings Higher on Buyout Bid

Bitauto stock, on the other hand, hit a four-month high earlier

Deputy Editor
Sep 13, 2019 at 3:29 PM
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Stocks are mixed today, but the Dow is eyeing its eighth straight win after China's new tariff exemptions. Two stocks in particular making big moves today are gastrointestinal diseases specialist Ritter Pharmaceuticals Inc (NASDAQ:RTTR) and Chinese car comparison website Bitauto Hldg Ltg (NYSE:BITA). Below, we'll take a look at what's moving the shares of RTTR and BITA. 

Lactose Intolerance Drug Fail Knocks RTTR to New Lows 

Ritter Pharmaceuticals hit a new record low of $0.29 earlier after the company said its lactose intolerance treatment, RP-G28, failed to meet its main goal in a late-stage study. The stock is one of the worst on the Nasdaq today, now down 70.6% at $0.31, set for its first close south of its 160-day moving average -- a trendline that caught two recent pullbacks -- for the first time since mid-June. The news had Alliance Global Partners slashing its rating to "neutral" from "buy," and removing its $7 price target.

Bitauto Options Volume Pops During Surge

China-based automotive stock Bitauto hit a five-month high of $15.45 earlier, last seen up 8.8% at $14.96, after tech name Tencent and private-equity firm Hammer Capital offered to buy all outstanding shares at $16 apiece, which values BITA at around $1.2 billion. The stock is now pacing for its fourth straight win, and its first close atop its 200-day moving average this year. 

Options traders are swarming the typically quiet auto stock today, with 3,300 puts and 3,700 calls across the tape so far, six times what's typically seen at this point. The October 15 put is by far the most popular, with contracts possibly being sold to open here. 

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