The stock of online mortgage services provider Mortgage.com (Nasdaq: MDCM) soared nearly 88 percent on Wednesday, gaining 7-3/16 to an all-time closing high of 15-3/8. Now investors just have to figure out why.
No news about Mortgage.com was announced, and the company can’t comment on its stock performance because it’s in the quiet period surrounding its initial public offering. There’s some speculation about Mortgage.com being a takeover target, and right now, that explanation seems to make as much sense as anything else.
Prior to Wednesday, Mortgage.com stock had barely moved since going public on August 11, when it priced its IPO at $8 and saw its stock close below the offering price. The IPO was a disappointment for Mortgage.com because the original proposed priced range was $10 to $12. In addition, Mortgage.com lowered the offering size from 7,500,000 to 7,062,600 shares.