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Super Micro Computer (NASDAQ:SMCI) stock is falling on Tuesday after the server and storage solutions company announced a proposed public offering for its shares.
This offering has the company intending to sell 2 million shares of SMCI stock. It also includes a 30-day option for underwriters to acquire another 300,000 shares. Goldman Sachs & Co. LLC is the sole underwriter and sole book-running manager for the offering.
Other details about the offering are still unknown. The company hasn’t announced when the offering will take place or how much shares in it will be priced.
Investors will note that this offering comes just one day after Super Micro Computer joined the S&P 500.
What This Means for SMCI Stock
News of the public offering lowering SMCI stock this morning makes sense. Investors don’t often react well to public offerings of the shares. That’s partially due to it diluting their current stakes with new outstanding shares.
Another concern for investors are the prices of shares included in offerings. These are typically lower than the stock’s current price. While the price of SMCI shares in the offering hasn’t been announced, this is likely a concern for traders.
SMCI stock is down 10.3% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.
Article printed from biedexmarkets.com Media, https://biedexmarkets.com.com/2024/03/smci-stock-alert-2-million-reasons-super-micro-computer-is-down-today/.
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