Navistar (NAV) CEO Just Triggered a Spike in His Company’s Shares

Navistar International Corporation (NAV) spiked 17% to $10.81 in midday trading today after CEO Troy Clarke suggested to Reuters that they would be a good acquisition target.

“Everything we’re doing today just makes us a better partner,” Clarke told the publication during a recent interview at the company’s headquarters. “Everything we do is just making a better company that performs well.”

Analysts have speculated that the Lisle, Illinois-based manufacturer of commercial and military trucks could be a candidate for an acquisition or alliance, possibly with the truck operations of German automaker Volkswagen AG.

Following Clarke’s comments, the name’s trading average volume jumped, with the issue currently trading more than 2.5 million shares compared to the average daily volume of 2.10 million.

On trading metrics, NAV has a beta of 2.40 and a short float of 15.9 million. In the past 52 weeks, shares of the company have traded between a low of $5.78 and a high of $31.28 with its 50-day MA and 200-day MA located at $7.47 and $11.91 levels, respectively.

On valuation-measures, shares of Navistar International have a forward P/E of 8.71. P/E to growth ratio is 1.97, while t-12 profit margin is (1.81%). EPS registers at (2.26). The company has a market cap of $881.50M and a median Wall Street price target of $9.50 with a high target of $20.00.

NAV currently prints a one year loss of about 68% and a year-to-date return of around 5%.

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