Sykes Enterprises Shares Plunged: What You Need to Know

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 outsourcing specialist Sykes Enterprises (NAS: SYKE) fell more than 10% today, continuing a downward trend that's seen the stock sell off more than 13% over the past week. The Dow Jones Industrial Average (INDEX: ^DJI) is down just 3.5% over the same period.

So what: There's no firm news to explain the action. And while volume was up 19% over the three-month average, that's not enough to suggest that Big Money investors are selling the stock wholesale.

Now what: The message? Sykes' weakness could be short-lived. Here's hoping management is making good on previously announced plans to repurchase up to 5 million shares, especially now that the stock is trading for less than the long-term earnings growth rate analysts expect. Do you agree? Would you buy shares of ACI Worldwide at current prices? Please weigh in using the comments box below.

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At the time this article 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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