Billion-Dollar Buyout Sends Foot Locker Stock Surging

Core Viewpoint - Foot Locker Inc is experiencing a significant surge in stock price following the announcement of a $2.4 billion acquisition by Dick's Sporting Goods, indicating a strong market reaction and potential upside for investors [1]. Group 1: Acquisition Details - Dick's Sporting Goods will acquire Foot Locker for$2.4 billion, translating to $24 per share, which represents an 86% upside from Foot Locker's current trading price [1]. - Following the acquisition news, Dick's Sporting Goods shares have decreased by 14% [1]. Group 2: Stock Performance - Foot Locker's stock has been trading at nearly 15-year lows, with a nine-month deficit of 28% prior to the recent surge [2]. - The stock's 20-day moving average has recently provided support, contributing to the increase in share price [2]. - The recent surge in Foot Locker's stock price marks one of its best single-day percentage increases ever [2]. Group 3: Short Interest - Short interest in Foot Locker has risen by 7.8% over the past two reporting periods, now accounting for over 16% of the stock's total available float [3]. - At the current average daily trading pace, it would take approximately three days for short sellers to cover their positions [3].