Range Resources Shares Jumped: What You Need to Know
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 natural gas shale producer Range Resources (NYS: RRC) jumped as much as 10% today on unusually high volume.
So what: We were moving along in a normal trading pattern until, bam!, volume spiked and shares rose just after 11:00 ET. There are rumors swirling through the market that a non-U.S. suitor is pursuing the company, although they're just rumors right now.
Now what: Do traders know something we don't? Has news of a buyout offer leaked out of Range Resources? The answer for now is, we just don't know.
The trading pattern is very unusual today, but until I hear from management I wouldn't buy into market rumors. If you think Range Resources is a good buy, shares are now up just 5%, and a buyout would bring tremendous upside, but buy based on fundamentals, not rumors today.
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At the time this article was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of Range Resources. Motley Fool newsletter services have recommended buying shares of Range Resources. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.