Zoll Medical Shares Plunged: What You Need to Know

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ZOLL Medical (NAS: ZOLL) slumped more than 11% in early trading on heavy volume.

So what: No discernible news caused the downturn. Rather, it seems Big Money investors are choosing to dump their positions and shop elsewhere. More than 1.33 million shares changed hands -- a 264% increase from the average trading day.

Now what: Color me intrigued. Not only are the sales without context, but also the underlying business is showing positive inventory trends and trades for a noticeable discount to the long-term annual earnings growth rate analysts expect. Where do you stand on this stock? Would you buy at current levels? Please weigh in using the comments box below.

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At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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