Boston, MA 06/16/2014 (wallstreetpr) – Managed network services provider TW Telecom Inc (NASDAQ:TWTC) shares may continue its uptrend in the stock exchanges on Monday too on the potential of being an acquisition target. The company’s stock surged on Friday’s trading with volume recording 5.7 times higher than the previous day trading. In the process, the stock had reached a yearly high on June 13 intraday trading.
Stock Price Rise
As much as 4.33 million shares were traded on Friday with the stock hitting a high of $36.82 and the day’s low of $32.99, which was also the opening price. The volume surged in comparison with the preceding three days volume of 625.3K, 899.K, and 665.8K shares. Its three-month average volume was only 757.6K shares, while the latest ten-day average volume was 1.04 million shares. By all counts, the trading was minimum more than three times the average volume of the last ten days.
Shares of TW Telecom Inc (NASDAQ:TWTC) surged 12.4% to close the regular trading on June 13 at $36.34. During the day, it had hit a year high price of $36.82, which represented an uptick of 13.9%. However, the closing price of June 12 indicated that the net gain in the current month was only 11.8%, whereas the single day gain on June 13 was slightly higher indicating the rumor-monger’s role in price rise.
The stock is trading higher by 14.1% and 19.1% compared to the 50-day and 200-day moving average prices of $21.86 and $30.52 respectively. The surge in stock price came despite the company’s earnings missing the Street analysts’ expectations for the recent quarter.
Reason for Increase
While there is no significant news from TW Telecom Inc (NASDAQ:TWTC) side to trigger a sudden uptrend on Friday and that too on the last trading of the week, a report by Bright Wire on the possible sale of the company has sparked the hectic activity in the counter. The report indicated that Level 3 Communications, Inc. (NYSE:LVLT), integrated communications services provider, is in discussions with TW Telecom to buy the company. Both the companies have also declined to either confirm or deny the news.
