- Argenx (ARGX) announced the acquisition of Forte Biosciences (FBRX) at $77 per share on July 27.
- FBRX saw significant price movement beginning June 29, weeks before the public announcement.
- Both FBRX and ARGX exhibited notable trading activity ahead of the deal, suggesting possible insider knowledge influencing price action.
- This case exemplifies how pre-announcement trading patterns can signal forthcoming M&A activity, offering educational insight into market behavior.
Today’s Featured Stock
Author’s Note: Today’s Chart of the Day is for educational purposes only. I want to illustrate that before any M&A is announced to the public, you will sometimes see an individual who has insider information acting on it.
On July 27, it was announced to the public that Argenx (ARGX) would acquire Forte Biosciences (FBRX) at $77 per share.
Valued at $1.06 billion, Forte Biosciences is a clinical-stage biopharmaceutical company. It is developing a biotherapeutic referred to as FB102 for the treatment of autoimmune conditions.
Argenx, valued at $54.57 billion, is also focused on treatments for autoimmune diseases and cancers.
Please note the price movement in FBRX beginning on June 29 prior to the acquisition announcement on July 27:
Note the similar price movement in ARGX on almost identical dates:
Dive Deeper into the Charts
Concentrate on the top line of the 50-day Turtle Channel of each chart and see if you come to the same conclusion that I do. The Trend Seeker noticed price movement in FBRX on June 29 at $21.32. I wonder who made a 261% gain in just a month? Try to guess the date the management of both companies began talks.
This lesson can be confirmed on almost any acquisition activity prior to announcement to the public.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
