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Why Silicon Motion Stock Zoomed 13% Higher Today

TheMotleyFool

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Why Silicon Motion Stock Zoomed 13% Higher TodayPhoto, wide shot, wide-angle lens, Telecom equipment supplier, Midday, harsh overhead sunlight, directional sunlightt, photo by Thomas Heaton: https://img.theapi.app/temp/3967c11c-b755-4d39-87d0-acc853384c80.png

There's nothing like a takeover rumor to inflate the price of a stock. That dynamic was in play on Monday, with solid-state chip-component maker Silicon Motion Technology's (NASDAQ: SIMO) American depositary receipts (ADRs) blasting nearly 13% higher on scuttlebutt of a potential buyout.

In an article published Sunday afternoon and citing "people familiar with the matter," Bloomberg said Silicon Motion is currently exploring a possible sale. It is holding talks with several potential acquirers and is working with advisors to assist with the decision.

Image source: Getty Images.

Source Fool.com

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