Today there was a significant trade block executed today around 1 hour and 40 before the close. The size of the transaction was 685,390 shares and they were purchased at the ask for 18.02 when the bidders were at 18.00, meaning this was an intentional purchase by one buyer and not a sale. This took out all of the sellers at that ask price for a short time and the stock shot higher for the next 20 minutes.
Putting that into perspective, someone came in to accumulate $12,350,727 worth of the company at these levels. That is a serious commitment, but also consider this: They saved $2M by purchasing their shares today instead of when the stock was at $21 a share. That is a pretty significant savings.
Be greedy when others are fearful. Someone did that today.
Another excessively large trade block occurred during the last minute of the day. Someone bought everyone’s shares sitting at the ask for $17.74. They purchased $10,788,332 worth of the company or 608,136 shares.
Typically, this is an institutional trade where the broker was tasked with buying or selling x number of shares on the basis that the broker exerts “best efforts” over the trading day and the trade is settled near end of day on a Volume Weighed Average Price basis. Pretty sure,
that is what happened here.
Not to get into TA, but…
as I like to say, Price and Volume are truth. Why is someone willing to “pay up” to obtain a large quantity all at once? Sure, it is only 2 cents, but why not wait and save money? Put in a low bid. Someone thought this was a good place to buy. Someone big. They could be wrong and they could be stupid, but odds are they aren’t. A nice sign anyway you look at it. I like the stock here and nibbled the other day, it is cheaper now and I will nibble again because I believe the COMPANY has great growth prospects and is in the right place at the right time. In blackjack when the dealer is showing 6, the odds are greatly in your favor and you go strong. You might be wrong in the end, but it is the right move for the probabilities. Better smart and wrong then dumb an lucky because dumb and lucky is not repeatable.
Apologies for the OT comment, I was unable to resist.
Not to get into TA, but… as I like to say, Price and Volume are truth. Why is someone willing to “pay up” to obtain a large quantity all at once? Sure, it is only 2 cents, but why not wait and save money? Put in a low bid. Someone thought this was a good place to buy. Someone big. They could be wrong and they could be stupid, but odds are they aren’t. A nice sign anyway you look at it. I like the stock here and nibbled the other day, it is cheaper now and I will nibble again because I believe the COMPANY has great growth prospects and is in the right place at the right time.
Pete, this isn’t TA analysis, this is common sense! Personally, if I want to buy a stock, I NEVER would risk not getting it to save 2 cents.
Saul
There is a grey column in the middle that contains some key stock data. Take a look at the section called “stock money flow”. It shows the uptick/downtick trade ratio, currently at 1.61 (scale is from 0 to 2), which shows a higher proportion of buying interest than selling interest.
The overall net money flow INTO the stock is $7.73M. That’s the net new money entering the stock buying at the asking price vs those selling at the bid price.
Block Trades are often rebalancing by “smart beta” ETFs and such as well. They certainly can be motivated institutional buyers, but remember that someone also sold the block for that price too.
Hard to say that it’s good or bad for the stock as it depends on the motivation of the buyers and sellers and who is right on the direction of the stock.
That said, the price of these large blocks can be a useful reference point to confirm or refute your opinion and analysis on where the stock is going
That is a serious commitment, but also consider this: They saved $2M by purchasing their shares today instead of when the stock was at $21 a share. That is a pretty significant savings.
Yes, they saved, from buying at a lower price [than it was before].
Worth consideration.
Who knows, of course, but the stock may continue to fall, down to test resistance around 13.50.
Sorry for what may be a dumb, woolheaded question, but if new money is flowing into the stock and there is more buying interest than selling interest then why is the price falling each day?
It did end up a bit today, but not before dropping to 17.35.
I am not sure I understand the metrics you guys are talking about.
Sorry for what may be a dumb, woolheaded question, but if new money is flowing into the stock and there is more buying interest than selling interest then why is the price falling each day?
I don’t mean this to come off as sarcastic, but because the buyers weren’t willing to pay up, and there is supply from sellers was willing to hit the bids of the buyers, so the price goes down.
Any of these “money flowing into and out of stocks” reports are highly specious. Every buyer has a seller. The price action doesn’t lie, but sometimes it lets you get a good (or bad) deal.
There were high volumes of calls today bought on the ask today though. That suggest people are betting on upside, and also requires market makers to buy the stock to hedge, which will push prices up like today’s intraday spike that you saw.
Getting more interesting here and will hang on to my small position. May add some too
Gees, that’s an ugly chart that obscures what’s happening. Here’s an alternative that better highlights the point were you making about the stock’s likely (negative) prospects.