DENVER ( TheStreet) -- BioFuel Energy ( BIOF) shares tumbled Friday on above-average volume even after the company reported a narrowing third-quarter loss.

BioFuel Energy late Thursday said it had a third-quarter loss attributable to shareholders of $6.2 million, or 26 cents a share, compared with the year-ago loss of $33.1 million, or $2.18 a share. Revenue inched higher by 0.7% to $91.1 million.

Shares of BioFuel Energy were falling by 41 cents, or 22.8%, to $1.40. Earlier in the session, the stock touched an intraday low of $1.25. More than 287,000 shares changed hands by 10 a.m. EDT Friday, compared to the stock's 50-day average daily volume of 265,000, according to the Nasdaq.

BioFuel Energy has a 21.9 million-share float with a short interest float of only 0.2% as of Oct. 27, according to Yahoo! Finance. Insiders hold about 8.5% of the company's shares with another 55.1% owned by institutions.

Investors posting on Internet message boards called Friday's selloff a typical "sell the news" reaction, as the stock is now trading where it began the week. Before Friday's decline, BioFuel shares had gained more than 42% in the week leading up to its earnings release.

-- Written by Robert Holmes in New York.

Check out all of Friday's high-volume, under-$5 stocks at the Dollar Store

Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.

If you liked this article you might like

Paradigm Opportunity Protects Investors in Tough Times

Paradigm Opportunity Protects Investors in Tough Times

5 Things You Need to Know Before the Stock Market Opens (Correct)

5 Things You Need to Know Before the Stock Market Opens (Correct)

U.S. Investors Brace for a Third Bailout in Greece

U.S. Investors Brace for a Third Bailout in Greece

5 Things You Need to Know Before the Stock Market Opens

5 Things You Need to Know Before the Stock Market Opens

40 Hedge Funds' Best Stocks Show the Way for 2012 (Update 1)

40 Hedge Funds' Best Stocks Show the Way for 2012 (Update 1)