NICK’s Volume Surge

On Friday, 1,284,100 shares of Nicholas Financial ($NICK) exchanged hands. That isn’t merely heavy volume; it’s off the scales.

Put it this way, until fairly recently, a day with one-hundredth as much volume as Friday’s would be considered a busy day. Friday’s volume was greater than the entire volume for the first nine months of 2009.

Friday’s volume represents more than 10% of all of NICK’s outstanding shares and more than 20% of the float.

So what’s going on? I have no idea. Volume in NICK started to grow shortly before the last earnings report came out. The shares very briefly surged over $13 per share but have slowly pulled back.

If someone is busy accumulating shares, they haven’t told me.

Update: A reader informs me of a fact I had forgotten, NICK’s volume surge is due to Russell’s rebalancing. NICK was added to their Global index.

Posted by on June 26th, 2011 at 5:56 pm


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