TLDR
- Webull stock dropped 6.3% on Wednesday after a 3 million share block trade executed at $12.50 per share, a 2.3% discount to Tuesday’s close
- The block trade represented 1.3% of Webull’s float and had a total value of $37.5 million, marking the third large block trade in two weeks
- Shares already fell 6.6% on Tuesday as concerns mounted about a lock-up period expiring on October 8, releasing 455.6 million shares for potential sale
- Retail traders on Stocktwits showed “extremely bullish” sentiment despite the decline, arguing insiders are unlikely to sell at current depressed prices
- Webull has grown to 24 million users globally and analysts expect revenue growth above 25% annually through 2027
Webull Corp stock tumbled 6.3% during Wednesday’s trading session following a large block trade that rattled investor confidence. The decline came on the heels of a 6.6% drop on Tuesday, creating a challenging two-day stretch for shareholders.
The Wednesday selloff centered on a 3 million share block trade that executed at 8 a.m. New York time. The transaction priced at $12.50 per share, representing a 2.3% discount from Tuesday’s closing price.
The block carried a total market value of $37.5 million. It represented roughly 1.3% of Webull’s available float and accounted for 16% of the company’s 20-day average trading volume.
This marks the third large block trade for Webull shares in the past two weeks. During this period, three blocks totaling 3.1 million shares have changed hands at a combined market value of $43.8 million.
The timing of these trades coincides with a lock-up period expiration. According to regulatory filings, approximately 455.6 million shares held by existing shareholders became available for sale on or about October 8.
Retail Traders Push Back
Despite the price decline, retail sentiment on Stocktwits moved into “extremely bullish” territory. Message volume on the platform jumped over 225% compared to the previous day.
Some retail traders dismissed concerns about insider selling. One user argued that executives are unlikely to sell at current prices when they could wait for the stock to appreciate.
“There [are] not 20 execs getting ready to slam the sell button tomorrow at $12.80 when they can hold, run up the price, and sell for much more later,” the trader wrote. Another questioned the bearish case, pointing to growing retail investor interest in the market.
Company Performance
Webull reported strong growth in its most recent quarter. Second-quarter revenue climbed 46% year-over-year to $131.5 million.
The company now serves more than 24 million registered users globally. Last month, Webull expanded into the European market by launching brokerage services in the Netherlands.
Rosenblatt Securities analysts praised the platform’s evolution. They noted Webull has grown from a specialized data platform into the second-largest mobile-first brokerage in the U.S.
The firm expects Webull to maintain over 25% annual revenue growth through 2027. This forecast exceeds current market expectations for the company.
Webull completed its merger with a blank-check firm in April. The stock has gained more than 10% since that transaction closed.
The consecutive days of selling pressure come as the stock trades down about 12% over the past week. The block trades represent unusually large transactions relative to normal trading activity for the shares.
