Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drug research contractor Charles River Laboratories International (NYSE: CRL) spiked 19% on Tuesday on reports that management is considering a sale of the company.

So what: Citing an article published by dealReporter last night, Wall Street analyst R.W. Baird said that a deal is imminent and that the company could fetch as much as $40 per share -- a whopping 45% premium to yesterday's close. Of course, even if the rumors are unfounded, the buzz alone should draw a ton of attention to Charles River's seemingly undervalued business units.

Now what: Charles River may be one takeover target worth looking into. Even with today's big pop, the stock is still off more than 20% from its 52-week highs and currently trades at a forward P/E of 12. Fools know never to buy a stock based on buyout buzz alone, but Charles River's solid reputation in the lab testing space, big cash flow generation, and -- most importantly -- reasonable valuation might provide enough downside protection to make the bet a safe one.

Interested in more info on Charles River? Add it to your watchlist.