Why SpringWorks Therapeutics Stock (SWTX) Is Nosediving
Portfolio Pulse from Henry Khederian
SpringWorks Therapeutics Inc (NASDAQ:SWTX) stock dropped 8.4% after announcing a public offering priced at $29.00 per share. The offering includes approximately 9.48 million shares, aiming to raise about $275.0 million before expenses. The offering is expected to close on December 7, subject to standard closing conditions. Underwriters also have an option to buy an additional 1.42 million shares within 30 days. SWTX's 52-week range is between $18.00 and $34.16.
December 05, 2023 | 3:22 pm
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SpringWorks Therapeutics' stock price fell due to the announcement of a public offering at $29.00 per share, which is expected to raise approximately $275 million before expenses.
The stock price decline is likely due to the market's reaction to the dilution of existing shares caused by the public offering. The offering price is also a factor in the stock's short-term performance, as it sets a benchmark that can influence investor perception and trading behavior. The timing of the offering's closure and the underwriters' option to purchase additional shares add further context to the potential supply of shares in the market.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100