Why MeridianLink (MLNK) Shares Are Getting Hammered
Portfolio Pulse from Henry Khederian
MeridianLink Inc (MLNK) shares dropped 14.5% to $18.88 after announcing a secondary offering of 6,906,015 shares at $19.00 each, an increase from the initial announcement. The offering includes a 30-day option for underwriters to buy up to an additional 675,000 shares. MeridianLink will repurchase 2,406,015 shares using existing cash but will not receive proceeds from the sale. Citigroup and J.P. Morgan are leading the offering. MLNK's 52-week range is $13.62 to $25.88.
February 07, 2024 | 3:48 pm
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NEGATIVE IMPACT
MeridianLink's stock price fell 14.5% following the announcement of a secondary offering at $19.00 per share, indicating increased share supply and dilution concerns.
The drop in MeridianLink's stock price is directly related to the announcement of a secondary offering, which often leads to concerns about share dilution and selling pressure. The increase in the offering size and the company's decision to repurchase a portion of the shares using existing cash could also impact investor sentiment negatively in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100