Shares of Waddell & Reed Financial Inc. surged more than 4 percent in a four-minute burst of volume that the company ascribed to erroneous trading.
Shares of the mutual-fund manager, which opened at $43.60 and traded at an average price of $43.37 for three hours, leaped from $43.75 at 12:24 p.m. to $45.75 four minutes later. About 325,000 shares worth $14.5 million changed hands in 2,439 trades during the surge, data compiled by Bloomberg show.
“There was some sort of trading error that accounted for the spike in the stock price,” Hank Herrmann, the Overland Park, Kansas-based chief executive officer of Waddell & Reed, said by phone. “And that’s really what I know.”
Herrmann said he learned about the error from the firm’s trading desk.
The stock fell back after the jump, which totaled about 4.5 percent, though at $44.15 at 1:24 p.m. it remained more than 1 percent above its average price for the day. Waddell closed Wednesday down 13 percent for 2015.