Please ensure Javascript is enabled for purposes of website accessibility

Why Pacific Biosciences of California's Shares Popped 25% Today

By Travis Hoium – Feb 2, 2016 at 4:14PM

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

Could an acquisition be coming for Pacific Biosciences of California?

What: Shares of Pacific Biosciences of California (PACB 3.66%) surged as much as 37% in late trading today after rumors emerged of a potential buyout. With just minutes left in the trading day, shares had settled to a 25% gain.

So what: Reuters is reporting that Roche Holding AG has approached Pacific Biosciences about a potential acquisition. According to Reuters' sources, the deal hasn't moved forward because of a disagreement on a potential buyout price.  

Now what: This isn't really a case of "buy the rumor sell the news," rather it's just a rumor. It's a nice pop for investors today, but if a deal doesn't come through, the stock could fall back to where it was earlier in trading today.

The more important event this week is earnings, which come out after the market closes Wednesday, February 3. After a surprise profit of $0.02 per share last quarter investors will be looking for momentum, and rest assured, management will probably be asked about the potential acquisition on the conference call with analysts. Check back here after the numbers are out to see our take on the results.

Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Pacific Biosciences of California. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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

Pacific Biosciences of California, Inc. Stock Quote
Pacific Biosciences of California, Inc.
PACB
$5.80 (3.66%) $0.20

*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
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

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.