- Insulet (NASDAQ:PODD) stock is jumping on acquisition reports
- DexCom (NASDAQ:DXCM) reportedly wants to buy the company
- This would create a major contender in the diabetes device market
Insulet (NASDAQ:PODD) stock is heading higher on Tuesday as investors react to reports that DexCom (NASDAQ:DXCM) is considering acquiring the company.
According to these reports, DexCom wants to acquire Insulet to create a giant in the diabetes devices market. Insulet is the maker of a pump for delivering insulin. This makes it a good match with DexCom, which sells a glucose-monitoring system for people with diabetes.
It’s also worth mentioning that Insulet and DexCom already work together in the diabetes market. The two products mentioned above are able to work together to monitor glucose levels and provide users with more insulin as needed.
It’s currently unknown how much DXCM may be willing to pay for PODD as talks are allegedly still underway. What we do know is PODD has a market capitalization of $14.84 billion, which is roughly half of DXCM’s $29.06 billion market capitalization. We also know that the two companies are refusing to comment on the matter.
While PODD stock is rising higher on today’s news, it’s worth warning that a deal may not come to fruition. Sources close to the conversation claim that the discussions could be delayed or breakdown completely.
Even so, the extra interest in PODD stock today brings with it heavy trading of the shares. This has some 556,000 shares of the stock changing hands as of this writing. That’s already above its daily average trading volume of about 556,000 shares.
PODD stock is up 6.5% and DXCM stock is down 8.8% as of Tuesday morning.
Investors searching for more stock news are in the right place!
We’ve got all the hottest stock news worth diving into for Tuesday! Among that is what has shares of Abercrombie & Fitch (NYSE:ANF), Coinbase (NASDAQ:COIN), and Snap (NYSE:SNAP) stock on the move today. You can read all about that at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
