Why Sanderson Farms Stock Rocketed 12% at the Open Today
Shares of chicken giant Sanderson Farms (NASDAQ: SAFM) rallied out of the gate on June 22, jumping as much as 12% in the first 90 minutes of trading. That said, by 10:30 a.m. EDT the stock had cooled a touch, sitting with a gain of around 10%. The reason for the dramatic price advance was a Wall Street Journal article.
According to The Wall Street Journal, Sanderson Farms has hired Centerview Partners for advice on a potential sale of the company. Moreover, "people familiar with the matter" explain that there's already interest in such a transaction, with Continental Grain specifically being highlighted as a potential suitor. Obviously, investors would expect a premium to the price of the stock prior to this information coming public.
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Source Fool.com