As stated in today’s filing by the Securities and Exchange Commission, STRS Ohio - one of the largest public pension funds in the country and a major shareholder of Edgar Online Inc. (NASDAQ:EDGR) - on Wednesday disposed its entire holding of 2,984,400 shares at an average price of $1.25 per share.
This development explains the unusual spike on Wednesday’s volume where EDGR’s shares-traded, registered a record volume of 3,931,300.
The move clearly reflects lack of confidence and at best, confusion about the visibility of what’s ahead for Edgar Online, a $42 million market cap co., involved in the distribution of financial data and public filings for equities, mutual funds, and other publicly traded assets principally in the U.S.
Certainly, after losing its largest holder, at least for the time being, it’s difficult to talk about restoring confidence in the stock price. However, judging by ticker’s behavior in the last couple of days — despite the significant share dump, stock has responded positively. It closed up at $1.61 per share on Thursday, after adding $0.18 or 12.59% for the day.
Perhaps getting rid of Ohio State Teachers Retirement System 11.45% stake, may prove to be healthy after all for Edgar Online Inc., granted, once its operating margin turns positive.