Why ODDITY Tech Shares Are Down Premarket Wednesday
Portfolio Pulse from Lekha Gupta
ODDITY Tech (NASDAQ:ODD) shares fell in premarket trading after announcing a secondary public offering of 4 million shares by L Catterton, with an option for an additional 600,000 shares. ODDITY will not sell shares or receive proceeds from this offering. Despite strong Q4 FY23 results, the company's FY24 EPS guidance was below expectations. As of December 31, 2023, ODDITY had $168 million in cash with no debt. Shares dropped 5.88% to $43.41 in premarket.
March 13, 2024 | 12:33 pm
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ODDITY Tech's stock price fell due to the announcement of a secondary public offering by L Catterton, not benefiting ODDITY financially, and FY24 EPS guidance below expectations.
The announcement of a secondary public offering typically dilutes the value of existing shares, leading to a negative perception among investors. Although ODDITY is not directly selling shares or receiving proceeds, the offering by L Catterton and the below-expectation FY24 EPS guidance contribute to negative sentiment, driving the stock price down.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100