On Friday, shares of motion-sensing chip company InvenSense Inc. (NYSE:INVN) are skyrocketing, up around 27% in afternoon trading on rumored acquisition talks.
Japan’s TDK Corp. is reportedly in talks to acquire InvenSense, which specializes in motion processing solutions that enable a motion-based user interface for consumer electronics. According to Reuters, who cite people familiar with the matter, TDK has offered $12 per share for InvenSense, representing a 45% premium to the company’s opening price today. However, that offer price is still only 3% above the company’s 52-week high.
InvenSense produces chips for both iPhone maker Apple Inc. (NASDAQ:AAPL) and Samsung (OTC:SSNLF) . If it ends up being acquired, the chip maker would be the latest in the industry to be bought out, as consolidation and intense price conpetition are sweeping the sector. Smartphone chip maker Qualcomm Inc. (NASDAQ:QCOM) agreed to by NXP Semiconductors NV (NASDAQ:NXPI) for roughly $38 billion earlier this year.
Currently, INVN is a #4 (Sell) on the Zacks Rank, and as lost over 19% in value year-to-date.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>
APPLE INC (AAPL): Free Stock Analysis Report
NXP SEMICONDUCT (NXPI): Free Stock Analysis Report
INVENSENSE INC (INVN): Free Stock Analysis Report
Original post
Zacks Investment Research