Big trades in First Marblehead trigger concerns
The New York Stock Exchange raised concerns about unusually large trading in student lender First Marblehead Corp. today, just three days before the company is expected to report its most recent earnings.
More than 1.6 million shares of Boston-based First Marblehead were traded today, almost seven times the average numbers of shares that changed hands daily over the past month, according to data from Bloomberg. Most of the heavy trading was early in the day, and late afternoon, minutes before the New York Stock Exchange closed.
First Marblehead's stock ended the day up a whopping 26 percent, to close at $2.51, on a day when the overall market was listless.
The stock exchange said it has contacted First Marblehead today to find out about the trading activity, but said the company replied that it had a policy of not commenting on such matters.
Both First Marblehead and the stock exchange declined to comment.
First Marblehead, which provides a market for student loans to investors and lenders, was battered by credit crisis last year. It replaced its chief executive, slashed hundreds of jobs, and for the nine-month period that ended March 31 reported a per share loss of $3.30.
The company is expected to report fourth quarter earnings on Thursday, according to financial data provider FactSet CallStreet.
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