Why Embracer Stock Fell 14% on Tuesday
Shares of Embracer Group (OTC: THQQ.F) closed Tuesday's trading 13.8% lower. News reports showed that a major shareholder recently sold a large portion of its Embracer stock.
Canada Pension Plan sold 11 million shares of the Swedish video game company in the last week of September, according to the Stockholm stock market's ownership data. Swedish newspapers reported the trade on Tuesday morning, European time, and the negative market reaction was immediate. Embracer's American Depositary Shares opened the stateside morning session 10.2% lower and continued to dip through the day.
The pension plan reduced its Embracer ownership from 55 million shares to 44 million. The Canadian entity was Embracer's fifth-largest shareholder before the trade and continues to hold that position after the reduction. Owner and CEO Lars Wingefors is the company's largest owner by far, holding 22% of Embracer's capital and 41% of the stock's voting power.
Source Fool.com
