Summary
• Fonar Corporation’s stock surged 23.5% to $18.10 in after-hours trading following a take-private sale announcement.
• Shareholders will receive $19.00 per share in an all-cash transaction led by CEO Timothy Damadian.
• Trading volume increased significantly to 79,050 shares, indicating heightened investor interest in the acquisition.
Fonar Corporation (NASDAQ: FONR) soared to an after-hours price of $18.10, marking a significant increase of 23.5% from its previous close of $14.66. This price action corresponds with the company’s recent announcement regarding a definitive agreement for a take-private sale, generating substantial investor interest.
Take Private Agreement Boosts Investor Sentiment
The notable spike in Fonar’s stock price comes in response to the announcement of a definitive agreement for a “take private” sale to an acquisition group led by CEO Timothy Damadian. Shareholders are set to receive $19.00 per share for their common stock in an all-cash transaction. This acquisition agreement was confirmed by the company on December 23, 2025, and highlights the involvement of company management and board members in the transaction.
With this significant premium over the last closing price, the market appears to view the merger as a favorable move for shareholders, considering the financial details of the offer.
Market and Technical Picture
In terms of technical performance, Fonar’s stock has had a rough run, indicated by a 52-week range with a high of $20.42 and a low of $17.99, reflecting negative sentiment in prior periods. Over the last three years, the stock’s performance was just above flat, returning 1.57%. However, recent developments suggest a shift in momentum, with trading volume in the after-hours session reaching 79,050 shares, significantly above the average volumes of 15,650 over the last 10 days and 23,770 over the last three months.
The stock’s RSI stands at 45.48, suggesting that it is relatively neutral following previous declines, which may further shift as the market evaluates the acquisition.
Closing Thoughts
With shares reacting strongly to the latest acquisition news, the focus will likely remain on how this cash offer influences shareholder sentiment moving forward. Traders will be observing the developing situation closely, especially as the stock enters the next trading session amid this elevated interest.