Why Sun Country Airlines (SNCY) Stock Is Falling
Portfolio Pulse from Henry Khederian
Sun Country Airlines Holdings Inc (SNCY) stock dropped 8% after announcing a secondary offering of 4 million shares by an Apollo Global Management affiliate. Sun Country will not receive proceeds from the sale but plans to repurchase $5 million of shares at the offering price. Barclays and Morgan Stanley are the joint bookrunners for the offering.
December 12, 2023 | 3:38 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Apollo Global Management, through an affiliate, is conducting a secondary offering of Sun Country Airlines' stock, which may indicate a reduction in Apollo's position in SNCY.
While the news directly involves Apollo's affiliate, the impact on Apollo's stock price is uncertain as the transaction may be viewed as portfolio rebalancing, which is a normal activity for investment funds.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Barclays, as a joint bookrunner for the Sun Country Airlines secondary offering, may see a minor positive impact from underwriting fees, but the effect on the stock is likely to be negligible.
The role of Barclays as a bookrunner is part of its regular business operations, and the fees earned from this deal are unlikely to significantly affect its overall financial performance.
CONFIDENCE 70
IMPORTANCE 20
RELEVANCE 20
NEUTRAL IMPACT
Morgan Stanley, acting as a joint bookrunner for the Sun Country Airlines secondary offering, may experience a slight positive impact from underwriting fees, but this is expected to have a minimal effect on its stock price.
Similar to Barclays, Morgan Stanley's involvement as a bookrunner is a standard aspect of its business, and the income from this specific transaction is not anticipated to be material to its earnings.
CONFIDENCE 70
IMPORTANCE 20
RELEVANCE 20
NEGATIVE IMPACT
Sun Country Airlines' stock price fell due to the secondary offering of shares by an Apollo affiliate, indicating increased supply of shares without direct financial benefit to the company.
The stock price is likely to go down in the short term due to the dilutive effect of the secondary offering and the perception that an insider is selling a significant amount of stock, which can be seen as a negative signal by the market.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100