Skip to main content

Market Overview

Obalon Closes Above $1 Following Questionable Takeover Rumor


Obalon Therapeutics Inc (NASDAQ: OBLN) shares rose 60 percent Wednesday morning, triggered by a Seeking Alpha post that said Johnson & Johnson (NYSE: JNJ) could be making a bid for the company for $8 per share.

There was no source cited in the post and the author disclosed they were long Obalon's stock. Interestingly, the post was removed from Seeking Alpha, although it's unclear when it was taken down.

Penny stocks with a low float of under 20 million shares are susceptible to trader manipulation. Given the stock's recent volatility and the fact it flirted with the $1 level during this momentous trading means it could be getting targeted by momentum traders. Obalon has 12 million shares in its float.

Obalon Therapeutics closed at $1.13 per share, up 58.2 percent.


Related Articles (OBLN)

View Comments and Join the Discussion!

Posted-In: News Rumors Movers Media Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at