Pacific Sunwear Stock Drops 16% Amid Heavy Trading

Shares of Pacific Sunwear of California took a beating Wednesday in heavy trading as some institutional investors unloaded large blocks of stock.

The stock dropped 16%, or $4.38 a share, to $23.38. A total of 3.15 million shares were traded, more than eight times the average daily volume over the last three months.

Officials of the Anaheim retailer of casual apparel say they are stumped by the stock sales, speculating that investors simply may have been taking profits. The stock hit a 52-week high of $39.38 a share on July 6.

“I have no idea what’s going on,” Chief Executive Greg Weaver said.

The company said its business is strong and that its earnings and sales for the second quarter were better than anticipated. Net income for the three months rose 74% to a record $5 million, or 23 cents a share, while sales climbed 52% to $73.2 million.

Pacific Sunwear makes casual clothes, footwear and accessories for teens and young adults. The company operates 272 stores in 37 states.