The stock of Sylvan Learning Systems Inc., a Columbia-based provider of educational services, plunged by more than 13 percent yesterday as volume soared to more than six times its daily average.
The stock -- which closed Thursday at $18.75 -- had risen to $19.25 at about 1 p.m. yesterday when shares plunged $3, to close at $16.25, down $2.50 for the day.
Lee McGee, who is Sylvan Learning System's chief financial officer, said the stock dropped after news went out on a news wire service that an analyst at Robertson Stephens in San Francisco had lowered his 1994 earnings estimates on Sylvan by 5 cents per share.
Mr. McGee said there was no fundamental problem with the company. He said that investors reacted to the new estimate before reading the rest of the report, which he characterized as "positive enough."
The Sylvan executive also said some investors might have been short-selling.