GREENSBORO, NC - Call options on stock for The Fresh Market surged last Tuesday, leading many investors and industry analysts to look closer into the operations of this Southeastern retailer. The Fresh Market has been on ANUK's radar as of late as we previously speculated that a merger with Sprouts Farmers Market, could be possible. Though highly unlikely, could this option surge indicate a potential deal between these two retailers behind the scenes?
For more on this merger speculation, check out our previous article on the subject here.
During Tuesday's trading, investors acquired 511 call options on its stock, 144% more than the average volume of call options at 209. These call options grant their owner the right to buy a stock at a prespecified price during a certain time period. Investors profit when the stock price rises over this purchase price.
This stock activity was preceded by a recent rash of updates on The Fresh Market's stock from major stock analyst firms. According to the Ticker Report, these updates were:
An “underperform” rating with a $29.00 price target by Credit Suisse on July 17th
A “buy” rating from Northcoast Research on July 15th
A “sell” rating with a $9.00 decrease in price target to $27.00 by Goldman Sachs on July 8th
After Tuesday's trading activity, The Fresh Market has a consensus rating of “hold” with an average price target of $39.41, according to the Ticker Report.
Whether this recent activity could potentially indicate a huge future deal in the works, like a Sprouts merger, for The Fresh Market is difficult to tell, but it is a question which must nonetheless be asked.
As of the time of writing this article at 10:08am PST on Wednesday, August 6th, The Fresh Market's stock is down 0.73% to $29.73 per share. At the close of Tuesday's trading the stock was priced at $29.95 per share.
Stay tuned to ANUK for any updates on The Fresh Market.
