RVNC - Why Dynatrace Revance Therapeutics and Immunomedics Slumped Today
Wednesday brought some holiday cheer to Wall Street, as investors got out of the gloomy mood on hopes that their initial fears about a prolonged trade war between the U.S. and China might prove to have been overblown. Some reports suggested that the two nations might be closer to an early deal than previously thought, and cyclically sensitive markets like energy and bonds responded accordingly. However, several companies took the opportunity to raise capital by selling shares, sending their stock prices lower. Dynatrace (NYSE: DT), Revance Therapeutics (NASDAQ: RVNC), and Immunomedics (NASDAQ: IMMU) were among the worst performers. Here's why they did so poorly.
Shares of Dynatrace dropped more than 7% after the software intelligence specialist announced that it would do a follow-on offering of stock by some of the company's early shareholders. Under the offering, investors will sell 27.5 million shares, with underwriters having their usual option to purchase an additional 15%, or 4.125 million shares, for their own accounts. The downward move signals concerns that an exit by early shareholders could indicate a lack of confidence in the enterprise software company's future. Yet longtime Dynatrace shareholders won't be too upset with the downward move, because the stock is still up more than 50% from its IPO price back in August.
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