Chewy (NYSE:CHWY) stock is falling on Wednesday after Morgan Stanley (NYSE:MS) initiated a block sale of the company’s shares.
This has the block sale including 12.3 million shares of CHWY stock that are being resold by Morgan Stanley for between $20.45 per share and $20.85 per share. That’s worth highlighting, as the price of shares in the block sale is a discount from its prior closing price.
A block sale occurs when a large chunk of a company’s shares are sold all at once. Stock exchanges typically consider a trade a block sale when it contains at least 10,000 shares or has a “notional value in excess of $200,000.”
How the Block Trade Affects CHWY Stock
Considering the price of shares in the block sale is below the prior closing price, it makes sense that CHWY stock would fall alongside the news. Traders may also be pulling CHWY stock down as they aren’t happy about the block sale and its pricing.
All of this has shares of CHWY stock experiencing heavy trading on Wednesday. That has more than 8.4 million shares changing hands today. It’s also about to surpass the company’s daily average trading volume of about 9.2 million units.
CHWY stock is down 3.6% as of Wednesday morning.
Investors who want even more of the most recent stock market stories are going to want to keep reading!
We have all of the hottest stock market news that traders need to know about on Wednesday! A few examples include what’s happening with shares of Xeris Biopharma (NASDAQ:XERS), Nio (NYSE:NIO) and Trend Micro (OTCMKTS:TMICY) stock today. You can read up on all of these topics by checking out the following links!
More Stock Market News for Wednesday
- Why Is Xeris Biopharma (XERS) Stock Up 12% Today?
- Bank of America Issued a New Warning on NIO Stock
- Trend Micro Layoffs 2024: What to Know About the Latest TMICY Job Cuts
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
