Volume Spike Investor

A volume spike alert went off this morning in Natus Medical Inc. (NASDAQ: BABY) although this spike was after news.  The reason this has been included is that it went up when many might have guessed it would go down, and even for an up-moving reaction the move has been more than many would have projected.

The company priced a 4 million share secondary stock offering at $19.50, down only about 1% from yesterday’s $19.67 close.  At mid-day, shares are up almost 8% at $21.20.  Its 52-week trading range is $13.87 to $21.80, and its market cap before any adjustment from today is $484 million.

All of the proceeds are going to the company from the sale.  NASDAQ has the most recent average daily volume as 150,000, while more recent activity puts it closer to 250,000 by our look.

Right after noon and ahead of a 3-day weekend (4 for many), this has already seen almost 1.3 million shares.  A 5-times volume that could have been much less…..

This is the exact sort of move that should stand out to volume spike watchers and momentum traders next week.

Jon Ogg
May 23, 2008