Shares of fuel cell stock Bloom Energy (NYSE:BE) dropped nearly 8% in early trading today. The shares remained down about 5.2% as of 10:35 a.m. EDT.
TheFly.com just reported a big block trade in Bloom Energy. Last night it was revealed that someone is selling 9.2 million shares, asking for anywhere between $16.20 and $16.50 a share. With Bloom shares closing the day at about $17 Thursday, that price range was already disconcerting, and it got more so when the final price was announced this morning: $16.20, the bottom of the range.
The block trade in question is sizable: about 6.9% of all Bloom Energy shares now outstanding, according to data from S&P Global Market Intelligence. And the ultimate price received for these shares, $16.20, is a big decline from Thursday's close, indicating that there wasn't a huge appetite among buyers for so many shares at any higher prices.
On the other hand, with so many shares becoming available at such a low price, it's not at all surprising that no one was interested in buying other Bloom shares for more than $17. And with the share price having already recovered, it looks like the wave of selling has passed.
Absent any more substantive news, if you liked Bloom stock yesterday, I see no compelling reason to sell it today.