NDAQ Eyes Comeback After $2.75 Billion Verafin Buyout

The stock's 150-day moving average looks like a solid leg of support

Nov 19, 2020 at 11:25 AM
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The shares of Nasdaq Inc (NASDAQ:NDAQ) are up 3% at $126.43 this morning, following news that the shares exchange operator entered a definitive agreement to purchase anti-financial crime software name Verafin in a $2.75 billion cash deal. Nasdaq said it believes the deal will bolster its current suite of financial security products. 

This pop has NDAQ set to snap a five-day losing streak, bolstered by familiar support at the 150-day moving average -- a trendline that deftly captured a pullback in late October. Though it still has a ways to go before reaching its Nov. 9 all-time-high of $139.50, the equity still sports a 19.6% year-over-year lead. 

While options volume remains subdued, the 799 calls that have crossed the tape so far today are more than double what is typically seen at this point, and over three times the number of puts exchanged. Most popular by far is the monthly December 120 call, where positions are currently being opened, while the November 120 call is trailing behind. 

The brokerage bunch is split on the security, with six of the 13 in question calling it a "strong buy," and seven saying "hold." Meanwhile, the 12-month consensus price target of $143.56 is a 13.4% premium to current levels. 

 

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