Why Moog's Shares Plunged and Jumped
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: It was a strange trading day for Moog (NYS: MOG.A) , whose shares fell 10% at the open this morning, only to recover and finish more than 3% higher on the day.
So what: The driver of the big move was an earnings report that came out before the start of trading today. In the fiscal second quarter, the company saw sales increase 9% to $625 million and earnings rise 17% to $35 million, or $0.77 per share. Both results topped estimates.
Now what: The move later in the day makes sense because earnings were better than expected, so the mystery was early in the day. Volume was relatively light in early trading but picked up when someone made a 125,000-share order below yesterday's closing price. I would chalk up the move downward to a market that woke up a little groggy this morning.
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At the time this article was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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