Here's Why Hibbett Stock Soared Higher Today
Shares of sports retailer Hibbett (NASDAQ: HIBB) soared higher on Tuesday morning after the company agreed to be acquired by British retailer JD Sports Fashion for $1.1 billion. As of 10:30 a.m. ET, Hibbett stock was up 19% and hitting 52-week highs.
This deal has already been unanimously approved by Hibbett's board of directors and is expected to close later this year, pending shareholder and regulatory approval.
Under the terms of the agreement, JD Sports will pay Hibbett shareholders $87.50 per share, which is about 1% higher than where the stock is trading right now. However, it's a huge premium to where shares where trading less than a year ago. As recently as June, Hibbett stock was trading at $36 per share. So depending on when investors purchased shares, today's acquisition announcement could be a big win.
Source Fool.com
