Cross Country Healthcare: The FTC's Second Request Has Created An Arbitrage Opportunity

2025-04-03 16:33:18 ET

Summary

• Cross Country Healthcare stock has gone up on news that the company is being acquired by Aya Healthcare for $18.61 a share.
• The stock recently fell below $15 due to an FTC Second Request, delaying the acquisition completion to the second half of 2025.
• Investors could gain 25% if the deal proceeds, but face significant losses if it fails.
• I rate CCRN stock a Sell due to the FTC's stance on promoting competition in the healthcare industry.

Introduction And Thesis

Not long after I first rated Cross Country Healthcare ( CCRN ) a buy, the company announced it was being acquired by Aya Healthcare at a price of $18.61 per share. The stock promptly shot up and remains 20% above the price at the time of my article. I'll only take a partial victory lap here, since I didn't predict an impending acquisition in my analysis. I just thought the stock was cheap....

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