Please ensure Javascript is enabled for purposes of website accessibility

Why Herbalife, Synchronoss Technologies, and Omega Protein Jumped Today

By Dan Caplinger – Oct 6, 2017 at 4:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These stocks stood out on a relatively quiet day for the markets. Find out why.

Friday was a quiet end to the trading week on Wall Street, with major benchmarks generally easing slightly lower. The far-reaching impacts of Hurricanes Harvey and Irma became apparent to market participants today, as the monthly employment figures from the U.S. Department of Labor's Bureau of Labor Statistics showed the first drop in jobs in seven years. Yet most acknowledged the short-term nature of that setback, and the positive mood that has prevailed in the stock market for a while generally persisted. Some specific stocks saw big gains, and Herbalife (HLF -0.43%), Synchronoss Technologies (SNCR -1.67%), and Omega Protein (OME) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Herbalife has a successful tender

Shares of Herbalife soared 11% after the nutritional supplement specialist announced the results of a tender offer. Herbalife had agreed to purchase up to $600 million in stock at a price between $60 and $68 per share. Those who tendered shares were also given the right to receive an additional payment if Herbalife is taken private within the next two years. Herbalife said that the owners holding 6.7 million shares accepted the offer. Investors were pleased with the results of the tender, but the fact that it wasn't fully subscribed showed that shareholders are confident that Herbalife is actually worth more than the tender price.

Picture of Herbalife representative in front of palm trees and a clear sky.

Image source: Herbalife.

Synchronoss goes back to the table

Synchronoss Technologies stock soared 32% in the wake of the cloud-backup and mobile-activation company's decision to start talking again with major shareholder Siris Capital about a possible acquisition. After having broken off talks, Synchronoss has agreed to give Siris a period of exclusivity during which the private equity company will have the ability to negotiate a potential acquisition bid. According to Synchronoss, Siris has offered better terms than previous offers included, and investors are optimistic that after a long road that has been plagued by drama and turmoil, a final deal could give them the favorable resolution they've been seeking.

Omega gets an offer it can't refuse

Finally, shares of Omega Protein jumped by nearly a third. The maker of fish-oil supplements and other marine protein products received an offer from Canadian aquaculture specialist Cooke to purchase all of Omega's stock for $22 per share in cash. The deal values Omega Protein at about $500 million, and Cooke said that the deal will further diversify its business exposure to the finfish aquaculture industry. The two parties believe that the acquisition should be complete by the end of 2017 or early in 2018, but Omega shareholders will have to vote in favor of the deal in order for it to move forward.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Synchronoss Technologies, Inc. Stock Quote
Synchronoss Technologies, Inc.
$1.18 (-1.67%) $0.02
Herbalife Ltd. Stock Quote
Herbalife Ltd.
$20.64 (-0.43%) $0.09
Omega Protein Corporation Stock Quote
Omega Protein Corporation

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.