$UNIT Stock Up On Bullish Option Flow After Buyout Rumor

  • Post category:Options Trading
  • Reading time:4 mins read
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UNIT stock rose on bullish option flow on October 21, 2021, a day after rumors circulated that a buyer wanted to purchase the company for $15 a share.

Bullish Option Flow In UNIT Stock

Option flow on October 21, 2021, in UNIT stock

Make sure to review this lesson on option flow so that you understand the image above.

Zayo tried to buy Uniti for around $15 per share, talks stalled, WSJ reports

On October 20, 2021, rumors circulated by the WSJ that say a group including Zayo Group is trying to buy Uniti Group (UNIT) and its primary client, Windstream Holdings II. The talks with Uniti started in June, when the parties discussed a price of around $15 per share, or $3.5B, for the real estate investment trust, but they recently stalled over price, sources told the Journal. Uniti said in a presentation accompanying its Q2 earnings call in August that it believes UNIT stock should trade at closer to $20 to $30 per share, the Journal points out. The stock is up 8% to $13.04 following the report. Zayo is owned by DigitalBridge Group (DBRG) and private-equity firm EQT (EQBBF). The structure and terms of the potential deal couldn’t be learned, but it would be substantial given Uniti recently had about $5B of debt and Windstream has about $2B of net debt, say Lombardo and Gottfried. Source: https://www.wsj.com/articles/zayo-partners-seek-to-buy-uniti-windstream-sources-say-11634759548?mod=latest_headlines

Uniti Group Inc. Names Paul Bullington as Permanent Chief Financial Officer

On September 13, 2021, Uniti Group Inc. (Nasdaq: UNIT) announced that Paul Bullington, currently serving as Uniti’s interim Chief Financial Officer and Principal Financial Officer, has transitioned to the permanent role of Senior Vice President, Chief Financial Officer & Treasurer. Mark Wallace, who previously took a leave of absence due to health reasons, has departed the Company.

“On behalf of the Board and all of us at Uniti, I would like to thank Mark for his valuable contributions and service since the Company was founded in 2015,” said Kenny Gunderman, President and Chief Executive Officer. “I am also delighted to welcome Paul to the executive management team on a permanent basis. Paul’s leadership skills, knowledge of the communications infrastructure industry, and prior M&A experience will be invaluable as we continue to successfully execute on our strategic priorities.”

Prior to his current role, Mr. Bullington served as Senior Vice President of Strategic Operations at Uniti Fiber, and was the Chief Financial Officer of Southern Light prior to its acquisition by Uniti in 2017.

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of fiber and other wireless solutions for the communications industry. As of June 30, 2021, Uniti owns approximately 123,000 fiber route miles, 7.1 million fiber strand miles, and other communications real estate throughout the United States.

UNIT Stock Technical Analysis

UNIT has an average technical rating and it also does not offer a high quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to setup email alerts when UNIT technical rating improves.

UNIT stock chart has spiked too high and is not a good setup on October 21, 2021.
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