Acquisition, Merger, Stock-Moving Agreements

Several major companies are interested in acquiring Signify Health

Signify Health Inc (NYSE:SGFY) is soaring this morning, up 38.1% at $29.27 at last glance, after earlier hitting a one-year high of $29.88. This jump comes after news that (AMZN), CVS Health (CVS), and UnitedHealth Group (UNH) are all bidders for the home health services name, which is up for sale in an auction that could value it at more than $8 billion, according to the Wall Street Journal. 

The stock is now up a whopping 107.9% year-to-date. Before today’s pop, the $23.50 level was keeping a cap on gains. Plus, SGFY is looking to break a five-day losing streak with this bull gap. 

Though short interest has already started to unwind, it still represents 29.7% of the stock’s available float, or nearly a week’s worth of pent-up buying power. This means a sustained unwinding of pessimism could squeeze share even higher. Meanwhile, analysts are mostly bullish on Signify Health stock, with nine of the 11 in coverage calling it a “strong buy.” 

Options traders appear to be betting on a correction, however, with 10,000 puts across the tape so far — more than double the 4,132 calls traded. Plus, overall options volume is now running at 15 times the intraday average. The September 25 put is the most popular, with new positions being bought to open there. 

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By admin