SonoSite 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 SonoSite (NAS: SONO) exploded 27% higher today after the company agreed to be bought out by Fujifilm Holdings.

So what: Fujifilm will pay $54 per share, or $995 million, for the company to expand its reach in the health-care business. The board of directors has approved the transaction, and by all accounts it looks very likely to go through.

Now what: Since shares are trading very close to the offer price of $54, I don't see any reason not to cash out your shares today. If you hold, you're speculating on a higher offer and risking the downside of a deal not going through. With the holiday season approaching, I would take the 27% bump and run.

Interested in more info on SonoSite? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium does not have a 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.Motley Fool newsletter services have recommended buying shares of SonoSite. 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.

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