Jan.4,2013, 16.15 Eastern Standard time 500,000 shares were bought for $60.28.
Another 100 shares were bought in a seperate trade.
500,000 X $60.28 = $ 30,140,000
100 X $60.28 = $ 6,028
total $30,146,028 after hours.
This was a VWAP execution: a big buyer tells the broker they want 500K shares. The broker guarantees them the VWAP price, then buys the stock throughout the day. At the end of the day, the broker turns over the 500K shares to the buyer and reports it as an after-hours trade at the VWAP price. Believe me, there's no normal seller for 500K shares at that price.....
Your scenario is unlikely given the number of shares traded. The "big buyer" would have had to have had the broker buying for 3 days (assuming the broker got about 80% of the shares traded). Many of these shares would have been purchased in the 57-59 range. It is unlikely the "big buyer" would be so unsophisticated as to overpay by over $2 per share.
Thanks for the help. The Volume Weighted Average Price, can be agreed on at the time the order is made, where is the volume of shares coming from? The question is based on the observation that watching the time and sale screen on IB shows no such volume being traded. It seems a unfair advantage to a big buyer, in that there are many days much smaller volumes have moved the price much more. So is it being bought from a small number of large share holders, not on the open market or shares held by the brokerage? I would like to understand this better. Can you send a education link or a recommendation.
As of today, only two Mutual Fund holders have more than this number. Fidelity Mid-Cap Stock fund with 676,900 shares and Fidelity Puritan Fund with 575,724 shares.
In my humble opinion, someone sees the handwriting on the wall and is getting ready to make a bundle.