Why Houghton Mifflin Harcourt Stock Rallied 14% at the Open Today
Shares of educational publisher Houghton Mifflin Harcourt (NASDAQ: HMHC) rose a quick 14% at the open of trading on Tuesday. The move here, however, was likely tied to company-specific news that came out last week, though nobody is claiming any credit for it.
Citing "people familiar with the matter," Bloomberg reported that Houghton Mifflin Harcourt is exploring corporate options, notably including selling itself to another company. Although nobody is talking about this publicly, the rumor is that private-equity companies are showing some interest here. That makes sense given previous moves in the space among this group. Usually, when a company is bought out, there's a premium paid for the shares.
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Source Fool.com