Why Madison Square Garden Entertainment Shares Are Tumbling Today
Portfolio Pulse from Adam Eckert
Madison Square Garden Entertainment Corp (NYSE:MSGE) shares are trading lower after the company announced a secondary offering of 5.25 million shares by Sphere Entertainment Group. MSG Entertainment plans to repurchase approximately $25 million worth of its shares directly from the selling stockholder.
June 21, 2023 | 3:35 pm
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MSGE shares are trading lower after Sphere Entertainment Group announced a secondary offering of 5.25 million shares, with MSG Entertainment planning to repurchase $25 million worth of its shares.
The secondary offering announcement by Sphere Entertainment Group has led to a drop in MSGE shares. This is because secondary offerings often dilute the value of existing shares, causing the stock price to decrease. However, MSG Entertainment's plan to repurchase $25 million worth of its shares may help mitigate the impact of the secondary offering on the stock price.
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