Stock Story -
What Happened: Shares of packaged foods company Kellanova (NYSE:K) jumped 8% in the morning session after the company announced it had been acquired by M&M's maker Mars in a deal worth approximately $36 billion or $83.50 per share. The acquisition price represents a 33% premium to Kellanova's closing price on August 2, 2024, when Reuters broke the news about the deal.
Is now the time to buy Kellanova? Find out by reading the original article on StockStory, it’s free.
What is the market telling us: Kellanova's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago, when the company gained 22.5% on the news that the Wall Street Journal reported that Mars (known for M&Ms and Snickers) is in advanced talks to acquire the company (Kellanova). According to sources, "A deal could happen imminently, assuming talks don't fall apart."
Kellanova is up 38.9% since the beginning of the year, and at $80.20 per share, has set a new 52-week high. Investors who bought $1,000 worth of Kellanova's shares 5 years ago would now be looking at an investment worth $1,303.
![Why Is Kellanova (K) Stock Rocketing Higher Today](https://d68-invdn-com.investing.com/content/pic8744a472ca036d0a9f2375c3a9964b3d.jpeg)