Sprouts Farmers Market Six-Day Winning Streak In Jeopardy
Sprouts Farmers Market Inc (NASDAQ: SFM) shares are trading lower by $0.52 at $21.50 in Monday's session. The stock is looking to extend its six-day winning streak that has taken it from its March 9 close ($17.78) to $23.07 off the open in today's session.
Its gain may be attributed to the fact that Albertsons Cos, the grocery store chain backed by Cerebus Capital, has shown an interest in purchasing the company, which was revealed in a Sunday report by Bloomberg. One bullish Wall Street analyst pegs the value of the company in a potential deal at $26 per share.
At this time, it appears investors that were active in Sprout stock ahead of the news are taking profits in today's session. In the first two minutes of the session, it sprinted from Friday's close ($22.02) to $23.07 before reversing course. That level coincides with its September 2 high ($23.08)) and September 6 high ($22.84).
So far, the ensuing decline has the taken the stock beyond Friday's close ($22.02) as $21.22 stands as the low for the session. If the decline continues or no deal materializes soon, the next support level based on the daily charts isn't until Friday's low ($20.00).
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