RDN - Why is Bluebird Bio (BLUE) Stock Down 9% Today?
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Bluebird Bio (NASDAQ:BLUE) stock is slipping on Wednesday after the biotechnology company announced a proposed public offering.
The Bluebird Bio public stock offering includes 20 million shares of BLUE stock. There’s also a 30-day option for underwriters of the offering to acquire another 3 million shares. Goldman Sachs (NYSE:GS) and J.P. Morgan (NYSE:JPM) are the book running managers for the offering.
What’s still unclear about the offering is how much it will price shares of BLUE stock. However, we do know funds will toward the development of its ZYNTEGLO and SKYSONA gene therapies, as well as other products in its pipeline.
Why BLUE Stock Investors Are Unhappy With the News
It’s not often that investors celebrate a public stock offering. The introduction of new outstanding shares serves to reduce current shareholders’ stakes in the company. Adding to that, the offering typically values shares below their market price. That also drags the price of shares down and it makes sense investors wouldn’t like that.
As far as trading goes this morning, some 387,000 shares of the stock have changed hands. That’s still below the company’s daily average trading volume of about 3.5 million shares. Even so, shares of BLUE stock are down 9.3% in pre-market trading on Wednesday.
Stock traders seeking out all of the hottest market news today are in the right place!
InvestorPlace offers up all of the latest stock market coverage traders need for Wednesday. That includes why shares of Arcimoto (NASDAQ:FUV), Radian (NYSE:RDN), and Faraday Future (NASDAQ:FFIE) stock are moving today. You can read up on all of that news at the following links!
More Wednesday Stock Market News
- Why Is Arcimoto (FUV) Stock Down 44% Today?
- Why Is Radian (RDN) Stock Up 5% Today?
- Why Is Faraday Future (FFIE) Stock Up 29% Today?
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 InvestorPlace.com Publishing Guidelines.
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