The Viva Energy Group Ltd (ASX: VEA) share price is taking a tumble on Tuesday.
At the time of writing, the ASX 200 energy share is down 7% to $2.93.
Why is this ASX 200 energy share being sold off?
The weakness in the Viva Energy share price today has been driven by speculation that a major shareholder could be selling down its holding.
According to the AFR, energy and commodities trading giant Vitol could be looking to sell a large portion of its 40.85% stake.
The news outlet reports that Vitol has been listening to pitches from equity capital markets teams. And while a final verdict has yet to be made, a decision to offload $500 million of its ~$2 billion holding could be coming in the next few days.
Has the selling begun?
Although this ASX 200 energy share has tumbled today, it doesn't seem to have been from Vitol selling.
The trading volume so far today of 3.4 million units is largely in line with what has been traded in recent weeks. And looking through the course of sales for today, there are no trades that stand out as being larger than normal.
Instead, it seems that some investors are selling the rumour.
Should you buy the dip?
The team at Macquarie are likely to see this pullback as a buying opportunity. Late last month, its analysts put an outperform rating and $3.50 price target on the ASX 200 energy share.
This implies a potential upside of almost 20% for investors over the next 12 months.
In addition, the broker is expecting a 15.7 cents per share dividend in FY 2023. This would mean an attractive 5.3% yield at current levels.
