Friday was fairly quiet on Wall Street, with most major benchmarks starting the session in the red but gradually climbing to end with modest gains. Some nervousness about the beginning of the G-7 summit in Quebec City today weighed on market sentiment as the day began, but fairly cordial-looking photo-ops at least allayed the worst fears of the most anxious investors that the meeting among key U.S. allies would turn into a downright hostile trade battle. Some individual stocks also enjoyed outsize gains thanks to good news. Synaptics (NASDAQ:SYNA),iQiyi (NASDAQ:IQ), and Savara (NASDAQ:SVRA) were among the best performers on the day. Here's why they did so well.
Could Synaptics get bought out?
Shares of Synaptics gained 11% on reports that the fingerprint sensor specialist might be a takeover target. Speculation is swirling that U.K.-based Dialog Semiconductor, which makes semiconductor chips that help manage power in mobile devices, could be looking at buying Synaptics out in an effort to shore up its own sales and give it a broader, more diversified set of mobile-related products. Dialog has seen challenges recently because reduced use of its chips in iPhone models has weighed on revenue, but those watching a potential deal note that the opportunity to broaden its reach might give it more leverage in negotiating with smartphone and tablet makers in the future.
iQiyi keeps climbing
iQiyi stock jumped another 6.5%, adding to gains that have seen it double in just the past month. Investors were initially slow to believe that the Chinese digital video streaming platform could mimic the success of its counterparts in the U.S., but the company has now attracted the attention of stock analysts who have become increasingly optimistic about iQiyi's prospects. A strategic partnership with e-commerce company JD.com has also led to rising interest in iQiyi among customers. Despite some concerns about the pace of recent gains in certain areas of the Chinese technology sector, iQiyi's rise shows few signs of stopping.
Savara gets good reviews
Finally, shares of Savara soared 21%. The biotech company earned favorable comments from analysts at Evercore ISI, which started its coverage on the stock with a buy rating and a price target of $40 per share. Savara specializes in treatments for rare lung diseases, and earlier this week, the company gave an update on a clinical trial that hinted at favorable results for multiple participants in the study. It'll be a while before Savara can deliver full midstage clinical trial results, and a lot can happen between now and then. For now, though, shareholders seem optimistic about the prospects for further good news from the rising biotech.