Boston Scientific will acquire Apollo Endosurgery for $417 million
Apollo Endosurgery Inc (NASDAQ:APEN) stock is soaring, up 63.4% at $9.80 at last glance, after news that Boston Scientific Corp (BSX) will acquire the medical equipment name for $417 million. The deal, which is expected to close in the first half of 2023, is valued at roughly $615 million including debt, and will expand BSX's portfolio of gastric devices.
Today's pop has APEN trading at fresh one-year highs, as well as gapping well above its 320-day moving average. A short-term bounce was already in the cards, too, as the stock's 14-day relative strength index (RSI) of 29.5 stands in "oversold" territory. Year-to-date, the equity is now up 17.1%.
APEN's options volume is typically nonexistent, making the 1,935 calls exchanged so far much more notable. The December 10 call accounts for most of this activity, with positions being opened there.
Analysts are firmly bullish on Apollo Endosurgery stock. All three firms in coverage carry a "strong buy" rating, while the 12-month consensus price target of $12.60 is a hefty 27.5% premium to current levels.