Please ensure Javascript is enabled for purposes of website accessibility

Why Checkpoint Systems, Inc. Stock Skyrocketed 34.8% in March

By Steve Symington - Apr 5, 2016 at 8:45PM

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

The merchandise availability solutions company is being acquired.

Image source: Checkpoint Systems.

What: Shares of Checkpoint Systems (CKP.DL) climbed 34.8% in March, according to data provided by S&P Global Market Intelligence, primarily after the company announced it has agreed to be acquired by an affiliate of specialty label and packaging solutions specialist CCL Industries. 

So what: More specifically, CCL will acquire Checkpoint Systems for $10.15 per share in cash, which values the company at roughly $443 million. When the acquisition was announced on March 2, that price represented a 29% premium to Checkpoint's closing price the previous day, and a 50% premium over its 30-day volume-weighted average price. 

Now what: The acquisition remains subject to customary closing conditions, including approval by Checkpoint's shareholders. But assuming all conditions are met or waived, Checkpoint anticipates the transaction to close in the second quarter of 2016. With shares of Checkpoint stock now trading at exactly the agreed acquisition price -- and unless holding on a little longer will ensure you lock in lower long-term capital-gains tax rates -- I suggest Checkpoint shareholders take their profits now and put them to work elsewhere.

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

Checkpoint Systems Inc. Stock Quote
Checkpoint Systems Inc.

*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 service.

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 05/22/2022.

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.