Shares of Amaya Gaming Group Inc (TSX: AYA), an application software company, skyrocketed Tuesday with a strong price momentum hitting all time high on the regulatory approval for the acquisition of Rational Group. The shares of the company rallied more than 9% hitting its new intraday highs during each of the past two consecutive trading days with significant number of shares exchanging hands. In the last trading session, AYA was among the top gainers in the Canadian technology sector after jumping 14.4% and closing at its 52-week high of C$29.61 while recording huge volumes of 6.1 million shares. During the past 5-trading sessions, the stock powered 30.3% higher with daily average trading volumes of 1.15 million shares, while AYA accumulated over 28% recording daily average trading volumes of 894,337 shares. The stock is up 272% year-to-date.
The stock gained momentum after AYA announced that it received an approval for the proposed acquisition of PokerStars operator Rational Group for $4.9 billion from gaming regulators. Further, the company reported that the deal would expedite the entry of PokerStars into regulated markets, particularly the United States. Rational Group has online poker licenses in 10 countries including Belgium, Denmark, France and Germany. Moreover, analysts at Global Maxfin Capital raised their target price on the stock to C$35 from the earlier target of C$30 per share.
Company Description:
Amaya Gaming Group Inc (TSX: AYA) designs, develops, manufactures and distributes products for the gambling industry. The company markets server-based products including a multi-gaming platform, a proprietary gaming library, and a central reporting module. The products can be deployed in one location on a local area network, multiple locations on a wide area network, or as a stand-alone product.
1-Year Stock Chart:
Source: Bloomberg
