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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