Professional investors have been having some fun with Webjet’s faltering shares. They’ve fallen from a peak of $5.30 in February to $2.97 on 8/11/13 – a difference of more than 40%. Major shareholder, Thorney Investments, sold 800,000 shares in the Melbourne-based online travel agent between February 4 and August 1.
Then, between August 5 and October 30, it started buying again, scooping up 870,000 shares, taking its company share to 12.87%.
Webjet’s current share price is the lowest since early 2012. A major factor has been its poor annual result announced on August 21, in which Webjet revealed that Zuji, an Asian online travel company it bought, was performing well below market expectations.
Ironically it was the Zuji acquisition just a few months before that propelled the Webjet share price to record levels.