EIDX Soars on Billion-Dollar Merger

EIDX is hitting a new record high

Deputy Editor
Oct 5, 2020 at 9:29 AM
facebook twitter linkedin


Eidos Therapeutics Inc (NASDAQ:EIDX) is surging today, up 34.2% at $69.67 at last check, after announcing a merger with BridgeBio Pharma Inc (BBIO). More specifically, BridgeBio is set to buy Eidos Therapeutics in a cash-and-stock deal of about $2.8 billion. Shareholders of Eidos will have the option to either 1.85 shares of BBIO or to cash out at $73.26 per share up to $175 million -- a 41.1% premium to Friday's close. 

Ahead of the news, EIDX was down 9.5% year-to-date, and hanging out at familiar pressure at the $53-$54 region. Now, the equity is surpassing its record Dec. 16 high of $66.55.

Analysts were split on Eidos stock coming into today, with three in coverage at a "strong buy," three at a "hold," and one sporting a "strong sell." Meanwhile, the 12-month consensus price target of $59.38 is a 14.4% premium to Friday's close. 

Meanwhile, the 1.89 million shares sold short account for 15.1% of the stock's available float. In other words, it would take over 27 days to cover these bearish bets at EIDX's average pace of trading. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners