Why Bluebird Bio Stock Tanked After-Hours
Portfolio Pulse from Ryan Gustafson
Bluebird bio, Inc. (NASDAQ:BLUE) shares dropped 11.48% in after-hours trading following the announcement of a proposed public offering of $150 million of common stock. The company also plans to grant underwriters a 30-day option to purchase up to an additional $22.5 million of shares. The proceeds will support the commercialization and manufacturing of its gene therapies ZYNTEGLO, SKYSONA, and LYFGENIA, as well as finance working capital and other corporate purposes.
December 18, 2023 | 9:46 pm
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Bluebird bio's stock price fell after announcing a significant public offering of $150 million, which could dilute current shareholders' equity.
The stock price decline is likely due to investor concerns about equity dilution from the new stock offering. The funds raised are crucial for the company's operations, but the short-term impact on the stock price is negative due to the dilutive effect of the additional shares.
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