Medical Stock Surges to Multi-Year Highs on Acquisition News

NARI was already trading at its highest levels in more than 12 months

Jake Scott

Deputy Editor

Jan 7, 2025 at 9:25 AM

syk
NARI

Shares of Inari Medical Inc (NASDAQ:NARI) are 21.5% higher in premarket trading, on track to open at nearly $79 amid news that Stryker (SYK) agreed to acquire the medical device maker in an all-cash deal worth roughly $4.9 billion, or $80 per share.

NARI yesterday added 30.6%. Factoring today's pre-market performance, the equity is on track to start 2025 with a nearly 50% pop in the first two weeks of trading. Yesterday's close placed Inari Medical stock at its highest level since January 2024, and today's pop would move the equity to its highest mark since November 2022.

Call traders got ahead of the action, per NARI's 50-day call/put volume ratio of 4.88 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 77% of readings from the past year, and implies a penchant for bullish bets over the last 10 weeks.

Plus, a short squeeze could keep wind at the equity's back. Short interest is up 25.5% over the two weeks, and the 3.66 million shares sold short account for 6.8% of Inari Medical stock's total available float.

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