Dow Stock Stays Hot Amid Buyout Rumors

Plus, Dare Bioscience just bought Microchips Biotech

by Patrick Martin

Published on Nov 11, 2019 at 2:50 PM

The U.S. stock market is struggling to claw its way back into positive territory, as Wall Street digests a slew of trade-related headlines. Among the stocks making notable moves today are blue chip Walgreens Boots Alliance Inc (NASDAQ:WBA), plastic maker Tupperware Brands Corporation (NYSE:TUP), and drug stock Dare Bioscience Inc (NASDAQ:DARE). Here's a quick look at what's moving the shares of WBA, TUP, and DARE.   

WBA Options Pop as Buyout Rumors Swirl

Walgreens Boots Alliance is the best Dow stock today, up 6% to trade at $62.75, after a Bloomberg report indicated global investment firm KKR & Co had approached the company for a buyout. Walgreens has reportedly been exploring the option, and the deal would be the biggest leveraged buyout ever according to sources. WBA is still below its year-to-date breakeven point, despite adding 21% in the last three months. Plus, today's rally has run out of steam at the shares' 320-day moving average.

Options traders have been reacting to the news. More than 52,000 options have changed hands today, double the average intraday amount and volume in the 99th percentile of its annual range. Leading the charge is the November 61 call, but there are also new positions being opened at the December 60 put. 

New Bottom For TUP After Suspending Quarterly Dividend

Tupperware stock is trading down 1.1% at $9.22, after the houseware company suspended its quarterly common dividend Friday night. TUP earlier tapped a new record low of $8.32, and has now stretched its 2019 deficit out to 71%. The shares were even rejected by their 100-day moving average prior to a late-October earnings-induced bear gap. 

The bevy of short sellers are likely cheering the recent struggles. Short interest increased by 11.2% in the most recent reporting period, the most since July 2016. This represents 10% of TUP's total available float, and 5.5 times the average daily trading volume.

DARE Topples Key Trendline After Microchips Purchase

Dare Bioscience stock is up 11% to trade at $0.93 today, after the drugmaker announced it had bought Microchips Biotech. The company now has access to a microchip implant that delivers drug doses over an extended duration, but could face up to $46.5 million in contingent payments. DARE is on track to topple its 320-day moving average on a closing basis for the first time since April. However, the drug stock is still sitting below its year-over-year breakeven level. Analysts are hopeful, with all three in coverage rating DARE a "buy," while the consensus 12-month price target of $4 sits in territory not seen since May 2018. 


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